Presented Below Are Selected Transactions for Corbin Company for 2014

question 172

Essay

Presented below are selected transactions for Corbin Company for 2014.
Jan. 1 Received $3,000 scrap value on retirement of machinery that was purchased on January 1, 2003. The machine cost $90,000 on that date, and had a useful life of 10 years with no residual value.
April 30 Sold a machine for $31,000 that was purchased on January 1, 2011. The machine cost $90,000, and had a useful life of 5 years with no residual value.
Dec. 31 Discarded a business automobile that was purchased on April 1, 2010. The car cost $42,000 and was depreciated on a 5-year useful life with a residual value of $2,000.
Instructions
Journalize all entries required as a result of the above transactions. Corbin Company uses the straight-line method of depreciation and has recorded depreciation through December 31, 2013.

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Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Marginal Revenue

The additional revenue that a firm earns by selling one more unit of a good or service.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes infinitely with any change in price.

Perfect Mobility

An economic condition where factors of production such as labor and capital can be easily moved across industries or geographies without costs or barriers.