In January 2018, Hyper Co. purchased a machine that cost $80,000. The equipment is estimated...
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Accounting
In January 2018, Hyper Co. purchased a machine that cost $80,000. The equipment is estimated to have a 4-year useful life and a salvage value of $12,000. Required: a) Compute the amount of depreciation expense for 2018 and 2019 using sum-of-the-years'-digits method. b) Assume the Company used straight-line depreciation and sold the machine on July 1, 20x10 for $25,000 cash. Record the journal entry for the disposal and indicate the debit and credit entry(ies).
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