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welcome to uh an exercise that deals with about three different things weamp;#39;re going to uh continue our discussion of fixed assets and weamp;#39;re going to discuss uh asset acquisition and how we record costs weamp;#39;re going to record some depreciation and then finally we are going to uh dispose of the asset after some time so weamp;#39;re gonna weamp;#39;re gonna with a very limited scenario weamp;#39;re going to trace an asset um looks like a machine all the way from asset acquisition all the way through to disposal or disposition sale of the asset however you want to however you want to put it okay so when we see disposal here that generally means that we are selling it for uh for cash sounds like weamp;#39;re throwing it away right but weamp;#39;re not that would be retirement okay so letamp;#39;s look at our scenario here it says on January the second uh Verdi acquired a machine for 75 000 in addition to the purchase price they spent twenty one hundred dollars on