Prepare the journal entry required at December 31, 2015.

Schulz Ltd. purchased a machine in 2012 for $65,000. In late 2015, the company made a plan to dispose of the machine. At that time, the accumulated depreciation was $25,000 and the estimated fair value was $35,000. Estimated selling costs were $1,000. Assume that the asset qualifies as a held for sale asset at December 31, 2015.

Required:

a. Prepare the journal entry required at December 31, 2015.

b. On March 3, 2016, the asset is sold for $37,000. Prepare the journal entry to record the sale.

c. Repeat parts (a) and (b) assuming that the estimated fair value on December 31, 2015, was $45,000 instead of $35,000.

find the cost of your paper

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