Question - On January 1, Vandoren purchased a used machine for $65000. the next day, it was repaired at a cost of $1695 and was mounted on a new platform that cost $2400.(ignore sales taxes) . Management estimated that the machine would be used for seven years and would then have a $9000 salvage value. Depreciation was to be charged on a straight-line basis. A full year's depreciation was charged on December 31 of the first through the fifth years of the machine's use" and on April 1 of its sixth year of use, the machine was retired from service.
Prepare entries to record the retirement of the machine under each of the following unrelated assumptions: (a) it was sold for $15000 (b) it was sold for $25000 and (c) it was destroyed in a fire and the insurance company paid $10000 in full settlement of the loss claim.