Cars and Trucks Limited Owns an Engine Testing Machine Which

question 28

Multiple Choice

Cars and Trucks Limited owns an engine testing machine which was purchased for $120,000. After 3 years of use the machine had accumulated depreciation of $58,560 but was revalued to $80,000. Two years later the machine was sold for $60,000 and had accumulated depreciation at the time of sale of $36,800. What journal entries would be required to record the sale of the machine in accordance with AASB 116 requirements?

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Definitions:

Reagents

Substances or mixtures used in chemical reactions to bring about a change or detect the occurrence of a specific reaction.

2-Ketohexose

A category of hexose sugars characterized by having a ketone functional group in the second position of the carbon chain.

NaBH4

Sodium borohydride, a chemical compound used as a reducing agent in organic synthesis.

Alditol

A type of sugar alcohol formed by the reduction of the aldehyde or ketone group in monosaccharides.