Presented below are selected transactions at Ingles Company for 2010.
Jan. 1 Retire a piece of machinery that was purchased on January 1, 2000. The machine cost $62,000 on that date. It had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on January 1, 2007. The computer cost $40,000. It had a useful life of 5 years with no salvage value. The computer was sold for $18,000.
Dec. 31 Sold a delivery truck that was purchased on January 1, 2006. The truck cost $39,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value. The truck was sold for $12,000.
Journalize all entries required on the above dates, including entries to update depreciation, were applicable, on assets disposed of. Ingles Company uses straight-line depreciation. Assume depreciation is up to date on the books as of December 31, 2009.