Exercise 9-9 Presented below are selected transactions at Concord Corporation fo

Question

Exercise 9-9 Presented below are selected transactions at Concord Corporation for 2019 Jan. Retired a piece of machinery that was purchased on January 1, 2009. The machine cost $64,600 on that date. It had a useful life of 10 years with no salvage June 30 Sold a computer that was purchased on January 1, 2016. The computer cost $34,200. It had a useful life of 5 years with no salvage value. The computer was Dec. 31 Discarded a delivery truck that was purchased on January 1, 2015. The truck cost $41,880. It was depreciated based on a 6-year useful life with a $3,000 value. sold for $14,400 salvage value.

Explanation / Answer

Jan-01 Accumulated depreciation - equipment $ 64,600 Equipment $ 64,600 Jun-30 Depreciation expense ($34,200/5*6/12) $    3,420 Accumulated depreciation - equipment $    3,420 Jun-30 Cash $ 14,400 Accumulated depreciation - equipment (($34,200*3/5)+$3,420) $ 23,940 Gain on disposal of plant assets $    4,140 Equipment $ 34,200 Dec-31 Depreciation expense (($41,880-$3,000)/6) $    6,480 Accumulated depreciation - equipment $    6,480 Dec-31 Loss on disposal of plant assets $    9,480 Accumulated depreciation - equipment (($41,880-$3,000)/6*5) $ 32,400 Equipment $ 41,880

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