Question

During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset OriginalCost ResidualValue EstimatedLife AccumulatedDepreciation(straight-line) Machine A $ 76,700 $ 4,300 15 years $ 62,747 (13 years) Machine B 20,500 2,100 8 years 13,800 (6 years) The machines were disposed of in the following ways:a. Machine A: Sold on January 2 for $20,500 cash.b. Machine B: On January 2, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost.

Answer 1

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