On January 1,2017,a machine was purchased for $12,000.The machine was estimated to have a 10 year useful life and a residual value of $500.Straight-line depreciation is to be used.On January 1,2019,the machine was then exchanged for computer equipment with a fair value of $10,000.Assuming that the exchange had commercial substance,how much would be recorded as a gain on disposal of the machine on January 1,2019?

Question

Quizplus · Accepted Answer

B)$10,000 - [$12,000 - ($12,000 - $500)/ 10 × 2] = $300

On January 1,2017,a Machine Was Purchased for $12,000