Question: please help me and make sure the answer is correct. and please show work , please show work. show work . Thank you. Problem 7
Problem 7 (10 Points) (a) Cinema Paradiso Company purchased equipment in 2013 for $160.000 and estimated $10.000 salvage value at the end of the equipment's 10-year useful life. Al December 31 2019, there was $105,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation On March 31, 2020, the equipment was sold for $42.000 Indicate the accounts that are increased and/or decreased and by which amount to remove the equipment from the books of Brown Company on March 31, 2020 (b) Genesis Company sold a machine for $12,000. The machine originally cost $34.000 in 2018 and $8,000 was spent on a major overhaul in 2021 (charged to the Equipment account). Accumulated Depreciation on the machine to the date of disposal was $30,000 Indicate which accounts are increased and for decreased and by which amount to record the disposition of the machine
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