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CH9 II - CH9 II H Hanshew's Lumber Mill sold two machines...

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CH9 II H Hanshew's Lumber Mill sold two machines in 2011. The following information pertains to the two machines: Purchase Useful Residual Depreciation Sales Machine Cost Date Life Value Method Date Sold Price #1 €88,000 7/1/07 5 yrs. €8,000 Straight-line 7/1/11 €20,000 #2 €60,000 7/1/10 5 yrs. €7,500 Double-declining- 12/31/11 €36,000 balance Instructions (a) Compute the depreciation on each machine to the date of disposal. (b) Prepare the journal entries in 2011 to record 2011 depreciation and the sale of each machine. Dayton Mining Company purchased land containing an estimated 15 million tons of ore at a cost of $6,000,000. The land without the ore is estimated to be worth $900,000. The company expects to operate the mine for 10 years. Buildings costing $500,000 are erected on the site and are expected to last for 25 years. Equipment costing $300,000 with an estimated life of 12 years is installed. The buildings and the equipment possess no residual value after the mine is closed. During the first year of operations, the mining company mined and sold 2 million tons of ore.
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