1) Prepare journal entries to record the machine’s purchase and the costs to ready and install it. Cash is paid for all costs incurred.
2) Prepare journal entries to record depreciation of the machine at Dec 31
(a) it’s first year in operations
(b) The year of its diposal
3) Prepare journal entries to record the machin’s disposal under each of the following seperate assumptions
(a) it is sold for $24,500 cash
(b) It is sold for $98,000 cash
(c) It is destroyed in a fire and insurance company pays $35,000 cash to settle the loss claim
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