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/ Homework Answers / Accounting / Question $1,768,000 489,600 $1,278,400 (a) Date Account Titles and Explanation Debit Credit (To record cu

Question

Question

$1,768,000

489,600

$1,278,400

(a)

Date

Account Titles and Explanation

Debit

Credit

(To record current depreciation.)

(To record loss of the machine.)

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b.) On April 1, 2011, Chrysler sold the machine for $1,040,000 to Avanti Company.

c.) On July 31, 2011, the company donated this machine to the Mountain King City Council. The fair market value of the machine at the time of the donation was estimated to be $1,100,000.

On December 31, 2017, Monty Inc. has a machine with a book value of $1,278,400. The original cost and related accumulated depreciation at this date are as follows.

Machine

 

$1,768,000

Less: Accumulated depreciation

 

489,600

Book value

 

$1,278,400

 

Depreciation is computed at $81,600 per year on a straight-line basis.

Presented below is a set of independent situations. For each independent 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.

 

 

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