Answer:
1) loss at disposal 68,000 debit
accumulated depreciation 182,000 debit
milling machine 250,000 credit
2) loss at disposal 33,000 debit
cash 35,000 debit
accumulated depreciation 182,000 debit
milling machine 250,000 credit
3)
cash 68,000 debit
accumulated depreciation 182,000 debit
milling machine 250,000 credit
4) cash 80,000 debit
accumulated depreciation 182,000 debit
gain at disposal 12,000 credit
milling machine 250,000 credit
Explanation:
the book value is the same for all alternatives:
cost - accumualted depreciation
250,000 - 182,000 = 68,000 net book value
1) as there is no salvage value all the book alue is considered loss at disposal
from #2 to #4 we recieve cash for the milling machine to determinate the loss/gain we need to do as follows:
proceeds less book value = result (gain if positive loss if negative)
2) 35,000 - 68,000 = -33,000
3) 68,000 - 68,000 = 0
4) 80,000 - 68,000 = 12,000
