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Questions -
Marigold Corp., which has a calendar year accounting period, purchased a new machine for $94500 on April 1, 2013. At that time Marigold expected to use the machine for nine years and then sell it for $9450. The machine was sold for $50500 on Sept. 30, 2018. Assuming straight-line depreciation, no depreciation in the year of acquisition, and a full year of depreciation in the year of retirement, the gain to be recognized at the time of sale would be
$3250.
$9450.
$0.
$5250.
On January 1, 2011, Marigold Corp. purchased equipment at a cost of $395000. The equipment was estimated to have a salvage value of $8000 and it is being depreciated over eight years under the sum-of-the-years'-digits method. What should be the charge for depreciation of this equipment for the year ended December 31, 2018?
$10972
$10750
$49375
$48375
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