Question

On January 1, 2020, Ph-K4d Company purchased a new machine for $262,000. The machine was assigned...

On January 1, 2020, Ph-K4d Company purchased a new machine
for $262,000. The machine was assigned a salvage value of
$8,310 and an expected life of 20 years. Ph-K4d Company
will use the double-declining balance method to calculate
depreciation on the machine. 

On December 31, 2022, the machine was sold for $56,000 cash.

Calculate the amount of the loss recorded on the sale.
Business   Accounting   
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Answer #1

Double deciling depreciation rate = 1/20*2 = 10%

Book value on 31-December-2022 =$190998
Sale at =$56000
Loss on sale = $190998-56000
=$134998
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