Equipment acquired on January 3, 2005, at a cost of $360,000, has an estimated useful life of

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Equipment acquired on January 3, 2005, at a cost of $360,000, has an estimated useful life of 12 years, has an estimated residual value of $30,000, and is depreciated by the straight-line method.

a. What was the book value of the equipment at December 31, 2008, the end of the year?

b. Assuming that the equipment was sold on April 1, 2009, for $220,000, journalize the entries to record

(1) Depreciation for the three months until the sale date,

(2) The sale of the equipment.

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Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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Question Posted: Jul 17, 2012 02:11 AM

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Equipment acquired on January 3, 2005, at a cost of $360,000, has an estimated useful life of

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a Cost of equipment 360000 Accumulated depreciation at December 31 2008 4 years at 2750...View the full answer

Accounting

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