Raine Company has a machine that originally cost $58,000. Depreciation has been recorded for four years using the straight-line method, with a $5,000 estimated salvage value at the end of an expected ten-year life. After recording depreciation at the end of four years, Raine sells the machine. Prepare the journal entry to record the machine's sale for:

a. $37,000 cash
b. $36,800 cash
c. $28,000 cash

a. Cash                                            37000 Dr

   Accumulated depreciation       21200 Dr

              Machine                                58000 Cr

              Gain on disposal                  200 Cr

b.   Cash                                            36800 Dr

     Accumulated depreciation       21200 Dr

              Machine                                   58000 Cr

c.   Cash                                            28000 Dr

     Accumulated depreciation       21200 Dr

     Loss on disposal                        8800 Dr

              Machine                                    58000 Cr

Explanation:

The depreciation expense per year under straight line is:

Depreciation per year = (58000 - 5000) / 10 = 5300

For four years, accumulated depreciation is 5300 * 4 = 21200

The carrying value is 58000 - 21200 = 36800

The gain/loss on disposal is cash received - carrying value.

a. The gain/loss on disposal = 37000 - 36800 = 200 gain

b. The gain/loss on disposal = 36800 - 36800 = 0

c. The gain/loss on disposal = 28000 - 36800 = -8800 loss

do u ahve any choices

answer; ///(c) the way a government controls the supply,availability,and value of money;