Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations. Requried:
Prepare journal entries to record the machine’s disposal under each separate situation: (a) it is sold for $24,500 cash; (b) it is sold for $98,000 cash; and (c) it is destroyed in a fire and the insurance company pays $35,000 cash to settle the loss claim.

A Dec-31

Dr Cash 24,500

Dr Accumulated Depreciation 184,000

Dr Loss on Sale of Used Machine 41,100

Cr Machine 249,600

B. Dec-31

Dr Cash 98,000

Dr Accumulated Depreciation 1,84,000

Cr Profit on Sale of Used Machine 32,400

Cr Machine 249,600

C. Dec-31

Dr Cash 35,000

Dr Accumulated Depreciation 1,84,000

Dr Loss on Machine destroyed in Fire 30,600

Cr Machine 249,600

Explanation:

A. Preparation of the journal entries to record the machine’s disposal if it is sold for $24,500 cash

Dec-31

Dr Cash 24,500

Dr Accumulated Depreciation 184,000

Dr Loss on Sale of Used Machine 41,100

(249,600-24,500-184,000)

Cr Machine 249,600

(240,000+8,000+1,600)

B. Preparation of the journal entry to record the machine’s disposal if it is sold for $98,000 cash

Dec-31

Dr Cash 98,000

Dr Accumulated Depreciation 184,000

Cr Profit on Sale of Used Machine 32,400

(249,600-98,000-184,000)

Cr Machine 249,600

(240,000+8,000+1,600)

C. Preparation of the journal entry to record the machine’s disposal if it is destroyed in a fire and the insurance company pays $35,000 cash

Dec-31

Dr Cash 35,000

Dr Accumulated Depreciation 184,000

Dr Loss on Machine destroyed in Fire 30,600

(249,600-35,000-184,000)

Cr Machine 249,600

(240,000+8,000+1,600)

Working:

Cost of machine = 240,000+8,000+1,600

Cost of machine= $249,600

Depreciation (Straight-Line method) = Cost - Salvage / no of years

Depreciation= (249,600-28,800)/6 yr

Depreciation=$36,800

Accumulated Depreciation of 5 Years =($36,800*5)

Accumulated Depreciation of 5 Years =$184,000

i believe the answer is: streets and roads

public property refers to the property that can be used by all legal citizens in a certain country. the public property was created and maintain using the government budget that allocated specifically for it. the budget itself come from the citizen's income tax payment.