On May 1, 2010, Argus Manufacturing Co.acquired a machine for $180, 000.The machine was depreciated monthly using the straight-line method with an estimated life of ten years and no salvage value.On December 1, 2017, the machine was sold for $40, 000.
Required:
Compute the amount of gain or loss on the sale of the machine, and prepare the journal entry to record the sale.(Calculate depreciation to the nearest whole month.)

Question

Quizplus · Accepted Answer

The Answer of On May 1, 2010, Argus Manufacturing Co.acquired a machine for $180, 000.The machine was depreciated monthly using the straight-line method with an estimated life of ten years and no salvage value.On December 1, 2017, the machine was sold for $40, 000.
Required:
Compute the amount of gain or loss on the sale of the machine, and prepare the journal entry to record the sale.(Calculate depreciation to the nearest whole month.)