Equipment acquired on January 3 2012 at a cost of
Equipment acquired on January 3, 2012, at a cost of $380,000, has an estimated useful life of 16 years, an estimated residual value of $40,000, and is depreciated by the straight line method.
a. What was the carrying amount of the equipment at December 31, 2015, the end of the fiscal year?
b. Assuming that the equipment was sold on July 1, 2016, for $270,000, journalize the entries to record (1) depreciation for the six months until the sale date and (2) the sale of the equipment.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help