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In: Accounting

Concord Company has an old factory machine that cost $58,000. The machine has accumulated depreciation of...

Concord Company has an old factory machine that cost $58,000. The machine has accumulated depreciation of $32,480. Concord has decided to sell the machine. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) What entry would Concord make to record the sale of the machine for $29,480 cash? (b) What entry would Concord make to record the sale of the machine for $19,480 cash?

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Answer
No Accounts title and explanation Debit Credit
(a) Cash $29,480
Accumulated Depreciation $32,480
Gain on sale of machine $ 3,960
Machine $58,000
b) Cash $19,480
Accumulated Depreciation $32,480
Loss on sale of machine $ 6,040
Machine $58,000
Working
(A) Sale at $ 29480
Cost $   58,000
Accumulated depreciation $   32,480
Book value $   25,520
Sales price   $   29,480
Book value $   25,520
Gain /(loss) $     3,960
(B) Sale at $ 19480
Cost $   58,000
Accumulated depreciation $   32,480
Book value $   25,520
Sales price   $   19,480
Book value $   25,520
Gain /(loss) -$    6,040

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