Purchase Solution

Machine Disposal

Not what you're looking for?

Ask Custom Question

Jan. 2, 2002 Rit Co. disposes of a machine costing $44,000 w/ accumulated depreciation of $24,625.

What is the entry if:
- The machine is sold for $18,250 cash?
- The machine is traded in on a similar but newer machine having a $60,200 cash price, a $25,000 trade in allowance is received, and the balance is paid in cash?

Purchase this Solution
Solution Summary

This solution addresses the journal entries required to record the disposal of a machine.

Purchase this Solution
Free BrainMass Quizzes
Lean your Process

This quiz will help you understand the basic concepts of Lean.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

View More Free Quizzes
Related BrainMass Solutions

  • Journal Entries for Depreciation

    , 2007 and the disposal of the machine under each of these three independent situations.

  • Doulas County Replacement Costs

    of old machine Book value of old machine 2.

  • Old Equipment Replacement

    Park Company installed a brand-new $87,000 special molding machine for producing a new product. The product and the machine have an expected life of three years. The machine's expected disposal value at the end of the three years is zero.

  • Cash flows from old and new machines

    The machine will have a four-year useful life and a zero terminal disposal value. The next day, a salesperson offers the company another machine that promises to do the same job at annual cash operating costs of $9,000.

  • Problem 10-5A Calhoon Company

    Prepare journal entries to record depreciation of the machine at December 31 of its first year in operations and at December 31 in the year of its disposal. First year Dec. 31 Depreciation Expense?

  • Relevant Costs and Differential Analysis: Check Sorting Machine

    Therefore, the loss on disposal of old machine is not relevant for decision making. The cost of the old machine has already been incurred and the loss on its disposal is irrelevant for decision making.

  • Relevant costs

    The incremental investment in the new machine is Cost of new machine 40,000 Disposal Value of old machine (30,000) Net Investment 10,000 Incremental savings in machine operation is Annual cost of operation for new machine 9,000 Annual

  • NPV and IRR for the project

    One of its plants is trying to decide whether to automate a portion of its packaging process by purchasing an automated waste disposal and recycling machine.

  • Disposition of Assets

    Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. On July 31, 2011, the company donated this machine to the Mountain King City Council.

View More Related Solutions