Determine depreciation method used and date of asset acquisition; record disposal of asset The balance sheets of Tully Corp. showed the following at December 31, 2011, and 2010:
| December 31, 2011 | December 31, 2010 |
Machine, less accumulated depreciation |
|
|
of $80,000 at December 31, 2011, and |
|
|
$50,000 at December 31, 2010. | $60,000 | $90,000 |
Required:
a. If there have not been any purchases, sales, or other transactions affecting this machine account since the machine was first acquired, what is the amount of depreciation expense for 2011?
b. Assume the same facts as in part a, and assume that the estimated useful life of the machine is four years and the estimated salvage value is $20,000. Determine
1. What the original cost of the machine was.
2. What depreciation method is apparently being used. Explain your answer.
3. When the machine was acquired.
c. Assume that the machine is sold on December 31, 2011, for $47,200. Use the horizontal model (or write the journal entry) to show the effect of the sale of the machine.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.