On January 1,2018,Manzanita Manufacturing Purchased a Machine for $345,000 with an Expected

Multiple Choice

On January 1,2018,Manzanita Manufacturing purchased a machine for $345,000 with an expected life of 5 years and a residual value of $37,500.In addition,the company paid delivery costs of $3,000 and $12,000 to have the machine installed.Manzanita uses the double-declining-balance method of depreciation. If the company sells the machine at the end of 5 years and receives $28,750,the journal entry to record the sale will include which of the following?

A) Debit to Accumulated Depreciation for $345,000.
B) Credit to Machine for $345,000.
C) Debit to Loss on Sale for $8,750.
D) Credit to Residual Value for $30,000.