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

question 41

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 yea 3 assuming the straight-line method of depreciation is used?
(b) Illustrate the effects on the accounts and financial statements of the depreciation from Jamuary 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:

Photon

A quantum of electromagnetic radiation, often regarded as a discrete particle of light with zero rest mass and energy dependent on its frequency.

Particle Nature

The characteristic of matter to exhibit properties of particles, including mass and discrete boundaries, observable in phenomena like the photoelectric effect.

Wave Nature

Wave Nature relates to the characteristics of particles, such as photons and electrons, to exhibit properties typical of waves, including interference and diffraction.

Blue Irises

Refers to a physical trait where the irises of the eyes have a blue pigment.