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Grayson's Lumber Mill sold two machines in 2018. The following information pertains to the two machines: Purchase Useful Salvage Depreciation Sales Machine Cost Date Life Value Method Date Sold Price #1$66,0007/1/145yrs$6,000 Straight-line 7/1/18$15,000#2$50,0007/1/175yrs$5,000 Double-declining- 12/31/18$30,000 balance \begin{array}{cccccccc}&&\text { Purchase}&\text { Useful}&\text { Salvage }&\text { Depreciation } && \text { Sales }\\\text { Machine }&\text {Cost}&\text { Date }&\text {Life}&\text { Value}&\text { Method }&\text {Date Sold}&\text { Price }\\\hline\# 1 &\$66,000& 7 / 1 / 14 & 5 \mathrm{yrs} & \$ 6,000 & \text { Straight-line } & 7 / 1 / 18 &\$15,000\\\#2& \$ 50,000 & 7 / 1 / 17 & 5 \mathrm{yrs} & \$ 5,000 & \text { Double-declining- } & 12 / 31 / 18&\$30,000 \\&&&&&\text { balance }\\\end{array} Machine #1#2Cost$66,000$50,000 Purchase Date 7/1/147/1/17 UsefulLife5yrs5yrs Salvage Value$6,000$5,000 Depreciation Method Straight-line Double-declining- balance Date Sold7/1/1812/31/18 Sales Price $15,000$30,000 Instructions
(a) Compute the depreciation on each machine to the date of disposal.
(b) Prepare the journal entries in 2018 to record 2018 depreciation and the sale of each machine.
On Jun 01, 2024