On July 1, 2016, Osceola Company retired a metal stamping machine

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January 2nd, 2018

On July 1, 2016, Osceola Company retired a metal stamping machine that it had originally purchased for $1,500,000. At December 31, 2015, the machine had a book value of $125,000 and was being depreciated on a straight-line basis at $75,000 per year. Osceola sold the machine for $200,000.Required:1.Prepare any journal entries necessary to record the disposal of the machine.2.Next Level How does the disposal of the machine affect the 2016 financial statements?

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