Answer:
Machine #1 - $7,000, gain
Machine #2 - $3,000, loss
Machine #3 - $2,000, gain
Explanation:
Given;
Machine #1
Asset Cost = $85,000
Acquired Depreciation = $32,000
Sales price = $60,000
From the above information, the book value of machine #1
= $85,000 - $32,000
= $53,000
Gain/(loss) on disposal = $60,000 - $53,000
= $7,000
A gain of $7,000 on disposal.
Machine #2
Asset Cost = $30,000
Acquired Depreciation = $12,000
Sales price = $15,000
From the above information, the book value of machine #2
= $30,000 - $12,000
= $18,000
Gain/(loss) on disposal = $15,000 - $18,000
= ($3,000)
A loss of $3,000 on disposal
Machine #3
Asset Cost = $77,000
Acquired Depreciation = $28,000
Sales price = $51,000
From the above information, the book value of machine #1
= $77,000 - $28,000
= $49,000
Gain/(loss) on disposal = $51,000 - $49,000
= $2,000
A gain of $2,000 on disposal.
