Jonas Company purchased a photocopier that cost $15,000. The copier was expected to last for 1.25 million copies. In the first year of service the copier produced 180,000 copies, in the second year 250,000 copies and in the third year it had produced 175,000 copies. The company decided to sell the machine for $6,500 in the third year. Required: 1. Record the purchase and the three years of depreciation. 2. Record the subsequent gain or loss on the disposal of the machine.
Jonas Company purchased a photocopier that cost $15,000. The copier was expected to last for 1.25 million copies. In the first year of service the copier produced 180,000 copies, in the second year 250,000 copies and in the third year it had produced 175,000 copies. The company decided to sell the machine for $6,500 in the third year. Required: 1. Record the purchase and the three years of depreciation. 2. Record the subsequent gain or loss on the disposal of the machine.
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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Jonas Company purchased a photocopier that cost $15,000. The copier was expected to last for 1.25 million copies. In the first year of service the copier produced 180,000 copies, in the second year 250,000 copies and in the third year it had produced 175,000 copies. The company decided to sell the machine for $6,500 in the third year.
Required:
| 1. | Record the purchase and the three years of |
| 2. | Record the subsequent gain or loss on the disposal of the machine. |
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