Question: Equipment acquired on January 3 20Y3 at a cost of

Equipment acquired on January 3, 20Y3, at a cost of $415,000, has an estimated useful life of 15 years, has an estimated residual value of $32,500, and is depreciated by the straight-line method.
a. What was the book value of the equipment at December 31, 20Y6, the end of the year?
b. Assuming that the equipment was sold on July 1, 20Y7, for $285,000 illustrate the effects on the accounts and financial statements of
(1) Depreciation for the six months until the sale date
(2) The sale of the equipment.

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  • CreatedMarch 11, 2014
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