1. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return. 2. Diaz sold the machine for $17,000 cash. 3. Dlaz sold the machine for $31,900 cash. 4. Diaz sold the machine for $41,100 cash.

1. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return. 2. Diaz sold the machine for $17,000 cash. 3. Dlaz sold the machine for $31,900 cash. 4. Diaz sold the machine for $41,100 cash.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter17: Business Tax Credits And The Alternative Minimum Tax

Section: Chapter Questions

Problem 6CE

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Question

Dlaz Company owns a machine that cost $126,300 and has accumulated depreciation of $94,400. Prepare the entry to record the
disposal of the machine on January 1 in each seperate situation.
1. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return.
2. Diaz sold the machine for $17,000 cash.
3. Dlaz sold the machine for $31,900 cash.
4. Diaz sold the machine for $41,100 cash.
View transaction list
ces
Journal entry worksheet
1
3 4
Record the disposal of the machine receiving nothing in return.
Note: Enter debits before credits.
Debit
Credit
Date
General Journal
Jan 01
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