Prepare a correct set of income statements for the year ended June 30, 1995. The machine was acquired on May 1, 1995. Straight-line depreciation was used. The machine was scrapped without Shirt Tails receiving any consideration. Make the entry to record the depreciation expense for the period January through March 1998.
Depreciation is calculated from the date of acquisition.
Make the entry to record the retirement of the asset of March 31, 1998. Depreciation-Machinery 3,500 Loss on Machine Retirement 2,700 Machinery 6,200 To record retirement of machinery 17. You are the newly hired office manager at ABC CPAs, a large national accounting and auditing firm. Like many accounting firms, ABC has been experiencing increasing competitive pressures in recent years. If the costs of doing a new job are too great, the firm may be better off declining to bid on the job.