Short Problem Name
Year 1
Straight Line
Units of Production @ 18,000 stamps
Declining Balance
Year 2
Straight Line
Units of Production @ 22,000 stamps
Declining Balance
Year 3
Straight Line
Units of Production @ 23,500 stamps
Declining Balance
Year 4
Straight Line
Units of Production @ 10,000 stamps
Declining Balance
Year 5
Straight Line
Units of Production @ 18,000 stamps
Declining Balance
Part 2 – The business decides to use the Straight Line Method. At the end of year three, the business changes its strategic focus and outsources the stamping process. The machine is no longer necessary and is sold for $12,000. Prepare the journal entry to record the sale of the asset.
