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Bunhill Ltd acquires a new machine on 1st January 2024 for a price of £165,000 i...

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Bunhill Ltd acquires a new machine on 1st January 2024 for a price of £165,000 in cash. The accounting year-end for Library Ltd is on 31st December 2024. The machine has a residual value of £16,000 and an estimated economic life of 10 years. The company uses the straight line depreciation method. On 31st December 2024, Bunhill Ltd sells the machine for £156,000 in cash.

Which of the answers below correctly shows all the journal accounting entries related to these economic transactions for Library Ltd in year to 31st December 2024?

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