Bogle company purchased machinery for $320,000 on january 1, 2014. straight-line depreciation has been recorded based on a $20,000 salvage value and a 5-year useful life. the machinery was sold on may 1, 2018 at a gain of $6,000. how much cash did bogle receive from the sale of the machinery?

$66,000

Step-by-step explanation:

Data provided in the question:

Purchasing cost of the machine = $320,000

Salvage value = $20,000

Useful life of the machine = 5 years

The gain on selling of the machine = $6,000

Now,

The annual depreciation of the machine

= [Cost - salvage value] ÷ ( Useful life )

= [ $320,000 - $20,000 ] ÷ 5

= $60,000

Accumulated depreciation from January 1, 2014 to May 1, 2018

= Annual depreciation ×  (Duration from January 1, 2014 to May 1, 2018 )

= $60,000 × ( 4 years 4 months )

= $60,000 × years      

[48 months + 4 months = 52 months]

= $260,000

Therefore,

Book value on May 1, 2018 = Cost - Accumulated depreciation

= $320,000 - $260,000

= $60,000

Now,

Gain = Selling cost - Book value

$6,000 = Selling cost - $60,000

or

Selling cost = $66,000

Hence,

cash Bogle received from the sale of the machinery was $66,000

iu

step-by-step explanation:

the correct answer is 1: 2

step-by-step explanation:

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