A factory machine was purchased on January 1,2011 for $30,000.The machine has an expected 9-year useful life and a $3,000 estimated salvage value.On January 1,2017,the asset is sold for $3,500 cash.
Required:
1.Determine the total amount of depreciation expense taken over the life of the asset up to the day it is sold.Assume the company uses the straight-line method and has a calendar year.
2.Determine the asset's book value on the day it is sold.
3.Determine if the asset is sold at a gain or a loss,and show the amount.
4 .Explain how the sale will be reported on the statement of cash flows.

Question

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The Answer of A factory machine was purchased on January 1,2011 for $30,000.The machine has an expected 9-year useful life and a $3,000 estimated salvage value.On January 1,2017,the asset is sold for $3,500 cash.
Required:
1.Determine the total amount of depreciation expense taken over the life of the asset up to the day it is sold.Assume the company uses the straight-line method and has a calendar year.
2.Determine the asset's book value on the day it is sold.
3.Determine if the asset is sold at a gain or a loss,and show the amount.
4 .Explain how the sale will be reported on the statement of cash flows.

A Factory Machine Was Purchased on January 1,2011 for $30,000