A Machine with a Useful Life of 6 Years and a Residual

question 28

Essay

A machine with a useful life of 6 years and a residual value of $3,000 was purchased at the beginning of year 1 for $30,000.The machine was sold for $15,000 on April 1 in year 4.
(a)What was the book value of the machine at the end of year 3 assuming the straight-line method of depreciation is used?
(b)Illustrate the effects on the accounts and financial statements of the depreciation from January 1 to April 1 of year 4.
(c)Illustrate the effects on the accounts and financial statements of the sale of the machine on April 1.

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Definitions:

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, etc.

Long-Term Memory

A type of memory that holds information for long periods, potentially indefinitely, divided into explicit (conscious) and implicit (unconscious) memories.

Words Like

Likely pertains to lexical studies or exercises involving the identification of synonyms, antonyms, or associated words based on meaning or usage.

Method Of Loci

A memory aid method where items one needs to recall are linked to distinct physical places.