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Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $ 31,000 $ 3,100 6 years $ 23,250 (5 years) Machine B 60,200 3,500 15 years 45,360 (12 years) The machines were disposed of in the following ways: Machine A: Sold on January 1 for $8,700 cash. Machine B: On January 1, this machine was sold to a salvage company at zero proceeds (and zero cost of removal). Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B at the beginning of the current year.
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Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts ref...
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