Amachine costing $75,000 is purchased on september 1, year 1. the machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. double-declining-balance depreciation is used. if the machine is sold on december 31, year 3 for $13,000, the journal entry to record the sale will include:

cash                      13,000 debit

acc depreciation 65,000 debit

   equipment              75,000 credit

   gain on disposal      3,000 credit

Explanation:

First we do the double declining depreciation for the machine to knwo his book value at the end of year 3:

The book value is 10,000 and we are selling for 13,000 therefore, we have a gain for 3,000

To record we write-off the equipment account and depreciation and recognize the gain and enter the cash proceeds from sale

i would have to say its c

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