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Accounting treatment for the disposal of P,P&E

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Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2007. Depreciation has been recorded at a rate of $2,400 per year, resulting in a balance in accumulated depreciation of $8,400 at December 31, 2010. The machinery is sold on September 1, 2011, for $10,500.

Prepare journal entries to
(a) update depreciation for 2011 and
(b) record the sale.
(c)Use the information presented for Ottawa Corporation, but assume the machinery is sold for $5,200 instead of $10,500.

Prepare journal entries to
(a) update depreciation for 2011 and
(b) record the sale

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a. Depreciation expense (2400*8/12) 1600
Accumulated depreciation 1600

b. Cash ...

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