Custom Fabrication Company Has a Machine That Originally Cost $201,000

Essay

Custom Fabrication Company has a machine that originally cost $201,000. Depreciation has been recorded for seven years using the straight-line method, with a $9,000 estimated salvage value at the end of an expected eight-year useful life. After recording depreciation at the end of the seventh year, Custom Fabrication disposes of the machine.
For each of the following independent disposals of the machine, place the dollar amount of the recognized gain or loss in the appropriate column. If there is no recognized gain or loss, place a zero in each column.