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Machine with a useful life of 5 years and a residual value of $6,000 was purchased on January 3, 2016, for $48,500. The machine was sold on January 5, 2021, for $13,000 a. What is the book value of the machine on January 5, 2021, assuming straight-line depreciation is used? b. Illustrate the effects on the accounts and the financial statements of the sale of the machine on January 5, 2021. Enter increases in accounts as positive values and decreases as negative values, with one exception. Enter a decrease in Accumulated Depreciation as a positive amount. c. Illustrate the effects on the accounts and the financial statements of the sale of the machine if it had been sold for $18,000 instead. Assets - Liabilities + Stockholders' Equity Accumulated Depreciation Capital Stock Machine Cash Retained Earnings (b) Income Statement Statement of Cash Flows (b) (b) Investing (c) Operating No Effect Machine with a useful life of 5 years and a residual value of $6,000 was purchased on January 3, 2016, for $48,500. The machine was sold on January 5, 2021, for $13,000 a. What is the book value of the machine on January 5, 2021, assuming straight-line depreciation is used? b. Illustrate the effects on the accounts and the financial statements of the sale of the machine on January 5, 2021. Enter increases in accounts as positive values and decreases as negative values, with one exception, Enter a decrease in Accumulated Depreciation as a positive amount C. Illustrate the effects on the accounts and the financial statements of the sale of the machine if it had been sold for $18,000 instead. Assets - Liabilities - Stockholders' Equity Cash Machine Accumulated Depreciation Capital Stock Retained Earnings (b) Depreciation expense Statement of Cash Flows Sales come Statement Gain on sale of machine (b) Loss on sale of machine (c (c)

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