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On January 1, Year 1, Young Company Purchased a Machine

question 138

Essay

On January 1, Year 1, Young Company purchased a machine for $6,000.It had an estimated salvage value of $1,200 and a life of six years.The straight-line method of depreciation was used.At midyear in Year 4, Young sold the machine for $4,500 cash.
Required:
a. What is the book value of the machine at the time of the sale?
b. Give the journal entry to record the sale of the machine.


Definitions:

Cardiorespiratory Fitness

The level at which the heart, lungs, and muscles work together during exercise for an extended period.

Target Heart-rate

The optimal heart rate zone for maximizing cardiovascular benefits during exercise, usually a percentage of your maximum heart rate based on age.

Maximum Heart Rate

The highest number of heartbeats per minute during maximum physical exertion.

Rockport Walk Test

A fitness test designed to estimate an individual's aerobic capacity and cardiovascular fitness by measuring the time it takes to walk a mile as fast as possible.

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