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Rottino Company purchased a new cutting machine on January 1,2017 , at $17,000, paid in cash. It has been depreciated using the double-declining-balance method based on an estimated salvage value of $0 and an estimated useful life of 5 years. Requirements Prepare Rottino Company's journal entries to record the disposal of the machine on October 31 , 2018 in these two independent situations (5how your calculations to prove the result): (i) Sold the machine for $7,600 cash. (ii) Exchange the old cutting machine with cash of $1,000 for a new cutting machine. The old machine had a fair value of $7,000..

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Rottino Company purchased a new cutting machine on January 1,2017 , at $17,000, paid in cash. It has been depreciated using the double-declining-balance method based on an estimated salvage value of $0 and an estimated useful life of 5 years. Requirements Prepare Rottino Company's journal entries to record the disposal of the machine on October 31 , 2018 in these two independent situations (5how your calculations to prove the result): (i) Sold the machine for $7,600 cash. (ii) Exchange the old cutting machine with cash of $1,000 for a new cutting machine. The old machine had a fair value of $7,000.

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