The Machine Was Originally Purchased on January 1,2016 for $40,000

question 61

Essay

The machine was originally purchased on January 1,2016 for $40,000.The machine was estimated to have a useful life of 5 years and no residual value.The company uses straight-line depreciation.On December 31,2017,the machine was sold for $25,000.
Required:
Part a.Determine the gain (loss)on disposal,if any.
Part a.Prepare the journal entry to record the sale.
Part b.Assuming that the company had used the double-declining balance method instead of the straight-line method,explain how this would this have affected the gain (or loss)on the sale.(Do not include any calculations.)

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Definitions:

Experience

The knowledge or practical wisdom gained from direct participation in events or activities, shaping one's perception and understanding.

Gravity

A fundamental force of nature by which all things with mass or energy are brought toward one another, including objects ranging from atoms to planets and galaxies.

Universal Causality

The principle that every event has a cause, suggesting a fundamental order to the universe and the predictability of phenomena.

Hume

A philosopher who contributed significantly to ethics, epistemology, and the philosophy of religion with his inquiry into human nature.