Question - Presented here are selected transactions for Sager Corporation for 2010.
Jan. 1 Retired a piece of machinery that was purchased on January 1, 2000. The machine cost $113,103 on that date and had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on January 1, 2007. The computer cost $47,790 and had a useful life of 5 years with no salvage value. The computer was sold for $15,930.
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2005. The truck cost $49,383 and was depreciated based on an 8-year useful life with a $4,779 salvage value.
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Sager Corporation uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2009.)