pacifica manufacturing retired a computerized metal stamping mac 253669

Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2009. Pacifica sold the machine to another company and did not replace it. The following data are available for the machine:

Cost (installed), 1/1/2004 ………………………$920,000

Residual value expected on 1/1/2004 …………. 160,000

Expected life, 1/1/2004 ………………………… 8 years

The machine was sold for $188,000 cash. Pacifica uses the straight-line method of depreciation.

Required:

1. Prepare the journal entry to record depreciation expense for 2009.

2. Compute accumulated depreciation at December 31, 2009.

3. Prepare the journal entry to record the sale of the machine.

4. Explain how the gain or loss on the sale would be reported on the 2009 income statement.

Related Articles

armstrong helmet company 239138

Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...

read more
GET A FREE QUOTE





  
Open chat
Need help? We are Online 24/7
Hello 👋
Can we help you?