On January 1, Year 1, Young Company purchased a machine for $6,000.It had an estimated salvage value of $1,200 and a life of six years.The straight-line method of depreciation was used.At midyear in Year 4, Young sold the machine for $4,500 cash.
Required:
a. What is the book value of the machine at the time of the sale?
b. Give the journal entry to record the sale of the machine.

Question

On January 1, Year 1, Young Company purchased a machine for $6,000.It had an estimated salvage value of $1,200 and a life of six years.The straight-line method of depreciation was used.At midyear in Year 4, Young sold the machine for $4,500 cash.
Required:
 a.	What is the book value of the machine at the time of the sale?
b.	Give the journal entry to record the sale of the machine.

Quizplus · Accepted Answer

The Answer of On January 1, Year 1, Young Company purchased a machine for $6,000.It had an estimated salvage value of $1,200 and a life of six years.The straight-line method of depreciation was used.At midyear in Year 4, Young sold the machine for $4,500 cash.
Required:
 a.	What is the book value of the machine at the time of the sale?
b.	Give the journal entry to record the sale of the machine.

On January 1, Year 1, Young Company Purchased a Machine