Required information [The following information applies to the questions displayed below.] During the current year,...
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Required information [The following information applies to the questions displayed below.] During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Asset Machine A Machine B Machine C Original Cost $ 36,000 69,000 76,500 Residual Value $ 3,000 4,000 5,600 Estimated Life 12 years 8 years 17 years Accumulated Depreciation (straight line) $27,500 (10 years) 48,750 (6 years) 50,047 (12 years) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $8,000 cash. b. Machine B: Sold on December 31 for $12,925; received cash, $2,200, and a $10,725 interest-bearing (12 percent) note receivable due at the end of 12 months. C. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost. equired: Give all journal entries related to the disposal of each machine in the current year. Machine A. Machine B. Machine C
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