Question

Sunland Company purchased a new machine on May 1, 2009 for $548400. At the time of...

Sunland Company purchased a new machine on May 1, 2009 for $548400. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $22200. The company has recorded monthly depreciation using the straight-line method. On March 1, 2018, the machine was sold for $67800. What should be the loss recognized from the sale of the machine?

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Answer #1
depreciation per year = (548400-22200)/10
52620
dpereication for May 1,2009 to dec 31 ,2009   (52620*8/12)= 35080
Depreciation from 1 jan 2010 to dec 31,2017 (52620*8)= 420960
depreciation from 1 jan 2018 to feb 28 ,2018 (52620*2/12)= 8770
total accumulated Depreciation 464810
original cost 548,400
less: Accumulated Depreciation 464,810
book value on march 1,2018 83,590
cash from sale 67,800
Gain on sale 15,790 answer
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