Machine with a Useful Life of 5 Years and a Residual

Essay

Machine with a useful life of 5 years and a residual value of $6,000 was purchased on January 3, 2007, for $48,500. The machine was sold on January 5, 2012, for $13,000.
(a)What is the book value of the machine on January 5,2012 , assuming straight-line depreciation is used?
(b)Tliustrate the effects on the accounts and the finmcial statements of the sale of the machine on J wnury $5,2012$ .
(c)Illustrate the effects on the accounts and the finencial statements of the sale of the machine if it had been sold for $\$ 18,000$ instead