Final answer:
The question involves accounting for the sale of a depreciated asset using the double-declining-balance method. The journal entry to record the sale will include Cash, Accumulated Depreciation, a gain or loss account, and the Equipment account.
Step-by-step explanation:
The subject in question involves the calculation of depreciation using the double-declining-balance method and the creation of a journal entry for the sale of an asset in accounting.
A machine with a cost of $75,000, a salvage value of $10,000, and a useful life of 4 years is being depreciated using the double-declining-balance method. By the beginning of year 4, the accumulated depreciation needs to be calculated to determine the book value of the machine. Once this is known, a journal entry can be made to record the sale of the machine for $9,000. This entry will include a debit to Cash for the sale proceeds, a debit to Accumulated Depreciation for the total amount of depreciation recorded over the first three years, a debit or credit to Loss on Disposal or Gain on Disposal depending on whether the machine is sold above or below its book value, and a credit to the Equipment account for its original cost.