On December 31, 2017, Ayayai Inc. has a machine with a book value of $1,297,200. The original cost and related accumulated depreciation at this date are as follows. Machine $1,794,000 Less: Accumulated depreciation 496,800 Book value $1,297,200 Depreciation is computed at $82,800 per year on a straight-line basis. For the following situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. On July 31, 2018, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donation was estimated to be $1,518,000.

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter10: Long-lived Tangible And Intangible Assets
Section: Chapter Questions
Problem 22E
icon
Related questions
Question

None

On December 31, 2017, Ayayai Inc. has a machine with a book value of $1,297,200.
The original cost and related accumulated depreciation at this date are as follows.
Machine
$1,794,000
Less: Accumulated depreciation 496,800
Book value
$1,297,200
Depreciation is computed at $82,800 per year on a straight-line basis.
For the following situation, indicate the journal entry to be made to record the
transaction. Make sure that depreciation entries are made to update the book value
of the machine prior to its disposal.
On July 31, 2018, the company donated this machine to the Mountain King City
Council. The fair value of the machine at the time of the donation was estimated to
be $1,518,000.
Transcribed Image Text:On December 31, 2017, Ayayai Inc. has a machine with a book value of $1,297,200. The original cost and related accumulated depreciation at this date are as follows. Machine $1,794,000 Less: Accumulated depreciation 496,800 Book value $1,297,200 Depreciation is computed at $82,800 per year on a straight-line basis. For the following situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. On July 31, 2018, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donation was estimated to be $1,518,000.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage