Question - Foster Glass Company purchased a fax machine on July 1,2007 for $1,800. The fax machine had an estimated useful life of three years and a salvage value of $300. Assume Foster uses the double-declining balance (DDB) depreciation method.
Foster decided to replace its fax machine with a Bizhub on July 1,2008, Eagle Outfitters offered to buy the used fax machine from Foster for $1,000 (proceeds received upon purchase).
Record on Foster's books the July 1,2008 journal entry detailing the sale of the fax machine to Eagle.