On March 1 2015 Zephur Winds Ltd purchased a machine

#248
On March 1, 2015, Zephur Winds Ltd. purchased a machine for $80,000 by paying $20,000
down and issuing a note for the balance. The machine had an estimated useful life of nine years
and an estimated residual value of $8,000. Zephur Winds uses the straight-line-method of
depreciation and has a December 31 year end. On October 30, 2017, the machine was sold for
$62,000.Required:a. Prepare the journal entry to record the acquisition of the machine.b.
Assuming that the depreciation was correctly calculated and recorded in 2015 and 2016,
prepare the journal entries to update the depreciation and record the sale of the machine on
October 30, 2017.c. Assume instead that the company used the double-diminishing-balance
method to depreciate the cost of the machine:i. What amount of depreciation would be recorded
in 2015 and 2016?ii. What journal entries would be required to update the depreciation and
record the sale of the machine on October 30, 2017?View Solution:
On March 1 2015 Zephur Winds Ltd purchased a machine

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