Please help using Financial Statement Effects Template (FSET). E8-22. Recording Asset Acquisition, Depreciation, and...
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Please help using Financial Statement Effects Template (FSET).
E8-22. Recording Asset Acquisition, Depreciation, and Disposal On January 2, 2019, Verdi Company acquired a machine for $85,000. In addition to the purchase price, Verdi spent $2,000 for shipping and installation, and $2,500 to calibrate the machine prior to use. The company estimates that the machine has a useful life of five years and residual value of $7,000. Prepare journal entries to record the acquisition costs. b. Calculate the annual depreciation expense using straight-line depreciation and prepare a jour- nal entry to record depreciation expense for 2019. c. On December 31, 2022, Verdi sold the machine to another company for $12,000. Prepare the necessary journal entry to record the sale. a
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