166. A company paid $314,000 for a machine that was expected to last five years and have a salvage value of $40,000. During the third year of the machine's life, $37,000 cash was paid for replacement parts that were expected to increase the machine's productivity by 10% each year. Prepare the journal entry to record the $37,000 cost incurred in the third year.
167. On January 1, a company purchased a machine for $75,000 that had a six-year useful life and a salvage value of $6,000. After three years of straight-line depreciation, on January 1, 2013,the company paid $7,500 cash to improve the efficiency of the machine. The effect of the expenditure was to increase the productivity of the machine without increasing its remaining useful life or changing its salvage value. Straight-line depreciation is used throughout the machine's life.
a. Prepare the journal entry to record the $7,500 expenditure.
b. What amount of depreciation expense should be recorded for 2013?
168. A company sold for $40,000 cash a machine that originally cost $90,000. The accumulated depreciation on this machine was $47,000 at the time of the sale. What was the company's gain or loss on this sale?
169. A company had a building destroyed by fire. The building originally cost $650,000 and its accumulated depreciation as of the date of the fire was $300,000. The company received $400,000 cash from an insurance policy that covered the building and will use that money to help rebuild. Prepare the single journal entry to record the destruction of the building and the receipt of cash from the insurance company.
170. On April 1, 2013, a company discarded a computer that cost $15,000 and that had a useful life of fouryears and a salvage value of $1,000. Using straight-line depreciation, the accumulated depreciation as of December 31, 2012,was $10,700.
a. Prepare the journal entry to record depreciation up to the date of disposal of the computer
b. Prepare the journal entry to record the disposal of the computer.