Business, 07.10.2019 22:30 makiahlynn706

Saturn co. purchases a used machine for $240,000 cash on january 2 and readies it for use the next day at an $8,000 cost. on january 3, it is installed on a required operating platform costing $1,600, and it is further readied for operations. the company predicts the machine will be used for six years and have a $28,800 salvage value. depreciation is to be charged on a straight-line basis. on december 31, at the end of its fifth year in operations, it is disposed of.
required:
1) prepare journal entries to record the machine's disposal under each of the following separate assumptions:
(a) it is sold for $ 24,000 cash
(b) it is sold for $ 96,000 cash
(c) it is destroyed in a fire and the insurance company pays $34,500 cash to settle the loss claim.

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Saturn co. purchases a used machine for $240,000 cash on january 2 and readies it for use the next d...

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