Question: Question 3 IBM Ltd purchased a machine on April 31, 2015 for $ 85,000 cash.It had an estimated useful life of 8 years and a

Question 3 IBM Ltd purchased a machine on April 31, 2015

Question 3 IBM Ltd purchased a machine on April 31, 2015 for $ 85,000 cash.It had an estimated useful life of 8 years and a salvage value of $20000. On January 31, 2018 the machine was disposed of. The company's year-end is Dec 31 and the depreciation is done on a straight line method Required: Make a schedule for the depreciation of the asset Prepare the entry to record the disposal under each of the following scenarios The machine was sold for $22,500 cash The machine was sold at its salvage value Using the schedule made in section 1 above journalize the depreciation in year 2015 and 2017. What is the Net Book Value in year 2016

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