Machine with a Useful Life of 5 Years and a Residual

question 44

Essay

Machine with a useful life of 5 years and a residual value of $6,000 was purchased on January 3, 2007, for $48,500. The machine was sold on January 5, 2012, for $13,000.
(a)What is the book value of the machine on January 5,2012 , assuming straight-line depreciation is used?
(b)Tliustrate the effects on the accounts and the finmcial statements of the sale of the machine on J wnury $5,2012$ .
(c)Illustrate the effects on the accounts and the finencial statements of the sale of the machine if it had been sold for $\$ 18,000$ instead

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Definitions:

Operational Efficiency

Refers to the ability of an organization to deliver products or services to its customers in the most cost-effective manner while maintaining high-quality standards.

Transactional Activities

Business processes that involve exchanges or transactions between parties, such as sales, purchases, and payments.

Service Delivery Model

Refers to the way in which an organization provides services to its customers, incorporating strategies, structures, and processes.

Self-service Systems

Digital platforms that enable users to complete tasks or access information without the need for direct support from others.