Farley Mills Purchased New Machinery at the Beginning of 2012

question 132

Essay

Farley Mills purchased new machinery at the beginning of 2012 for $200,000.The machines had an estimated life of 5 years,an estimated residual value of $25,000,and were depreciated using the straight-line method.At the beginning of 2013,the machines were sold for $150,000 because management was unhappy with their performance.
Determine the following amounts:
A) Book value of the machinery at the end of 2012 .
B) Gain (loss) on the disposal of the machinery at the beginning of 2013 (Indic ate the amount and whether a gain or loss)

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Definitions:

Group Affiliations

The connections or associations an individual has with different groups, like social, professional, or religious organizations.

Task Force

A temporary group of individuals brought together to accomplish a specific goal or address a particular problem.

Royal Dutch/Shell Group

A global group of energy and petrochemical companies, known for its innovation in oil, gas, and renewables.

Business Plan

A detailed document outlining the goals, strategies, financial projections, and operational structure of a business intended to guide its growth and development.