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question 1 and 2 Mohr Company purchases a...

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Accounting

question 1 and 2
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Mohr Company purchases a machine at the beginning of the year at a cost of $42,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 8 years with a $4,000 salvage value. The book value of the machine at the end of year 2 is: Multiple Choice $28.500 $38.000 $38,000 $9,500 OK $32.500 $4,750 An asset's book value is $68,400 on January 1. Year 6. The asset is being depreciated $950 per month using the straight-line method. Assuming the asset is sold on July 1. Year 7 for $49,300, the company should record: Multiple Choice Neither a gain or loss is recognized on this type of transaction A loss on sale of $1000 A loss on sale of $1,000 O A gain on sale of $1.000 A loss on sale of $2,000 A gain on sale of $2,000

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