When a company sells machinery at a price equal to its book value, this transaction would be journalized with which entry? a. debit Cash und Deprrclation Expense and credir Accumalated Depreciation b. detit Cach and Accuinulated Degreciatioe and crefit Machinery c detit Canh and Machinery and credti Accumulated Depreciation d debit Mactisery und credie Cath and Accumulated Depreciation
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The book value of machinery is the original cost minus accumulated depreciation. Show more…
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The plant and equipment account in the records of a company for the year ended 31 December 20X6 is shown below. PLANT AND EQUIPMENT - COST 20X6 $ 20X6 $ 1 Jan Balance 960,000 1 July Cash 48,000 30 Sept Transfer disposal account 84,000 31 Dec Balance 924,000 1,008,000 1,008,000 The company's policy is to charge depreciation on the straight line basis at 20% per year, with proportionate depreciation in the years of purchase and sale. What should be the charge for depreciation in the company's statement of profit or loss for the year ended 31 December 20X6? A $184,800 B $192,600 C $191,400 D $184,200
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