Rayya Co. purchases and installs a machine on January 1, 2015, at a total cost of $176,400. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is disposed of on July 1, 2019, during its fifth year of service. 1. Record the depreciation expense as of July 1, 2019.
2. Record the sale of the machinery for $45,500 cash.
3. Record the total destruction of the machine in a fire with $25,000 cash insurance settlement.

1.Journal 2019 Expense:

Depreciation Expense $12,600 (debit)

Accumulated Depreciation $12,600 (credit)

2.Journal : Cash Sale of $45,500

Cash $45,500 (debit)

Accumulated Depreciation $113,400 (debit)

Profit an Loss $17,500 (debit)

Cost : Machine $176,400 (credit)

3.Journal : insurance settlement of  $25,000

Cash  $25,000 (debit)

Accumulated Depreciation $113,400 (debit)

Profit an Loss $38,000 (debit)

Cost : Machine $176,400 (credit)

Explanation:

Depreciation Expense (Straight line) = (Cost - Salvage Value) ÷ Estimated Useful Life

                                                             = $176,400 ÷ 7

                                                             = $25,200

2015

Depreciation Expense = $25,200

2016

Depreciation Expense = $25,200

2017

Depreciation Expense = $25,200

2018

Depreciation Expense = $25,200

2019

Depreciation Expense = $25,200 × 6/12

                                      = $12,600

Journal 2019 Expense:

Depreciation Expense $12,600 (debit)

Accumulated Depreciation $12,600 (credit)

Journal : Cash Sale of $45,500

Cash $45,500 (debit)

Accumulated Depreciation $113,400 (debit)

Profit an Loss $17,500 (debit)

Cost : Machine $176,400 (credit)

Journal : insurance settlement of  $25,000

Cash  $25,000 (debit)

Accumulated Depreciation $113,400 (debit)

Profit an Loss $38,000 (debit)

Cost : Machine $176,400 (credit)

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed