On January 1, X Company, purchased a machine for its employee
cafeteria. The cost was $220,000 and it had a five- year estimated
useful life and a $20,000 residual value. X Company uses the
double-declining balance depreciation method. At the end of year
three, X Company sold the machine for $50,000 because employee
productivity had declined significantly.
(a) Prepare a depreciation table for the machine’s five-year
life.
(b) What is the impact on X Company's financial statements from
selling the...