Total Month = (8*12+8+2) = 106
Accumulated depreciation = (38000-2000)*106/120 = 31800
Book value on the date of sale = 38000-31800 = 6200
Sale revenue = 6000
Loss on sale = $200
So answer is b) $200
42. Booth Company purchased a new machine on May 1, 2008 for $38,000. At the time...
10. Ecker Company purchased a new machine on May 1, 2009 for $528,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $24,000. The company has recorded monthly depreciation using the straight-line method. On March 1, 2018, the machine was sold for $72,000. What should be the loss recognized from the sale of the machine? A) $0. B) $10,800. C) $24,000. D) $34,800.
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