150. Sheffield Corporation purchased equipment on January 1, 2016 for $100,000. Sheffield used the straight-line method of depreciation with a $12,000 salvage value and a useful life of 5-years. On...

150. Sheffield Corporation purchased equipment on January 1, 2016 for $100,000. Sheffield used the straight-line method of depreciation with a $12,000 salvage value and a useful life of 5-years. On January 1, 2018 Sheffield sold this equipment for $70,000.
Required: a) Calculate the gain or loss Sheffield should recognize from this sale.
b) Prepare the journal entry to record the sale.

151. In January 2016, Rainey Co. purchased a machine that cost $150,000. The equipment is estimated to have a 5-year life and a salvage value of $30,000.
Required: a) Compute the amount of depreciation expense for 2016 and 2017 using the double declining balance method.
b) Compute the amount of MACRS depreciation for the above equipment for 2016 assuming the property is 5 year property and the MACRS percentage is 20%.