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42. Booth Company purchased a new machine on May 1, 2008 for $38,000. At the time of acquisition, the machine was estimated t

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Answer #1

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

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