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The following are selected transactions affecting Aggie Company$$s long$-$term assets during the $2023$ fiscal year.

Apr $1$ Purchased a truck for $$36,000.$ The truck is expected to last six years and have a

$$3,000$ salvage value. The company uses straight$-$line depreciation for its trucks.

June $1$ Sold a computer for $$20,000.$ The computer had been purchased for $$95,000$ on

January $1,2021.$ The computer was expected to last for five years with a salvage

value of $$5,000.$ The company uses the double$-$declining method to depreciate

their computer equipment.

Sept. $1$ Sold a piece of machinery that was purchased on January $1,2021.$ The machine

cost $$60,000$ and the company expected the machine to produce $36,000$ units.

The machine has an estimated salvage value of $$6,000.$ The machine produced $5,800$ units in

$2021$; $5,500$ units in $2022$; and $3,400$ units in $2023.$ The sale of the machine resulted in a loss of

$$2,950.$

Required:

$7.$ Determine the book value of the truck as of December $31,2023$:

A$.$ $$31,500$

B$.$ $$28,875$

C$.$ $$28,500$

D$.$ $$30,500$

E$.$ $$31,875$

$8.$ Determine depreciation expense for $2023$ on the computer:

A$.$ $$5,400$

B$.$ $$13,680$

C$.$ $$12,033$

D$.$ $$5,700$

E$.$ $$8,889$

$9.$ The journal entry to recognize the sale of the computer on June $1,2023$ would include a:

A$.$ Credit to computer for $$28,500$

B$.$ Credit to gain on sale of computer for $$8,500$

C$.$ Debit to Accumulated Depreciation for $$66,500$

D$.$ Debit to loss on sale of computer for $$12,000$

E$.$ Credit to gain on sale of computer for $$11,111$

$10.$ Determine the amount of cash received as a result of the sale of the machine on September $1,2023$:

A$.$ $$35,000$

B$.$ $$40,900$

C$.$ $$21,550$

D$.$ $$27,450$

E$.$ $$42,600$

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