Spa Sources Corporation Purchased a Machine That Had an Original

question 90

Essay

Spa Sources Corporation purchased a machine that had an original cost of $60,000 and an estimated residual value of $10,000. The useful life was expected to be 8 years and straight-line depreciation is used. At the end of 2014, the book value of the machine was $35,000. Spa Sources sold the machine for $32,000 cash on October 1, 2015.
Required:
A. Prepare the journal entry to record depreciation for 2015 up to the date of sale.
B. Prepare the journal entry to record the sale of the machine.

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Definitions:

Behavior

The actions or reactions of an organism, often in response to its environment.

Dysfunctional

Characterized by abnormal or impaired functioning, often affecting systems, relationships, or individual behavior.

Definition Of Abnormality

A concept used to describe patterns of behavior, thought, or emotion that deviate significantly from cultural norms and cause distress or impairment.

Dysfunction

An impaired or abnormal functioning of a bodily system or organ.