On 11/1/23 Footon Messaging Co. sold a machine for $34,000. The company bought this machine for $137,000
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On 11/1/23 Footon Messaging Co. sold a machine for $34,000. The company bought this machine for $137,000 seven years ago. When purchased, the company estimated that the machine would operate for 100,000 hours and have a salvage value of $12.000.
In the years leading up to its sale, the machine was operated for 71,525 hours. During 2023, it was used for another 5,360 hours. Footon Messaging uses the units of activity method for depreciation.
- How much depreciation expense will be reported for the equipment in the year it is sold?
- Record the journal entry for the sale of the machine. Show all work
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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