Jonas Company Purchased a Photocopier That Cost $15,000

question 16

Essay

Jonas Company purchased a photocopier that cost $15,000. The copier was expected to last for 1.25 million copies.
In the first year of service the copier produced 180,000 copies, in the second year 250,000 copies and in the third year it had produced 175,000. The company decided to sell the machine for $6,500 in the third year.
Required:
1) Record the purchase and the three years of depreciation.
2) Record the subsequent gain or loss on the disposal of the machine.