Question: Equipment acquired on January 8 2011 at a cost of

Equipment acquired on January 8, 2011, at a cost of $420,000, has an estimated useful life of 15 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, 2014, the end of the year?
b. Assuming that the equipment was sold on October 1, 2015, for $275,000, journalize the entries to record
(1) Depreciation for the nine months until the sale date,
(2) The sale of the equipment.

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  • CreatedFebruary 28, 2014
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