Equipment acquired on January 11, 2012, at a cost of $265,500, has an estimated useful life of eight years and an estimated residual value of $31,500.
a. What was the total amount of depreciation for the years 2012, 2013, and 2014, using the straight-line method of depreciation?
b. What was the carrying amount of the equipment on January 1, 2015?
c. Assuming that the equipment was sold on January 4, 2015, for $168,500, journalize the entry to record the sale.
d. Assuming that the equipment had been sold on January 4, 2015, for $180,000 instead of $168,500, journalize the entry to record the sale.