What is the net book value of the asset on December

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Reference no: EM132739774

Question - On January 1, 2017, Flour Corporation purchased a machine that had an original cost of $80,000 and an estimated residual value of $10,000. The useful life was expected to be 8 years and straight-line depreciation is used. Flour sold the machine for $70,000 cash on December 31, 2018.

Required -

A. Prepare the journal entry to record depreciation for 2017.

B. What is the balance of accumulated depreciation as of December 31, 2018?

C. What is the net book value of the asset on December 31, 2018?

D. Prepare the journal entry to record the sale of the machine.

Reference no: EM132739774

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