Multiple Choice
A machine costing $75,000 is purchased on September 1, Year 1. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. Double-declining-balance depreciation is used. If the machine is sold on December 31, Year 3 for $13,000, the journal entry to record the sale will include:
A) A debit to loss on sale for $3,042.
B) A credit to gain on sale for $4,979.
C) A credit to gain on sale for $8,000.
D) A credit to accumulated depreciation for $59,375.
E) A debit to loss on sale for $2,625.
Correct Answer:
Verified
Correct Answer:
Verified
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