Equipment was acquired at the beginning of the year at a cost of $600,000. The equipment was
Question:
Equipment was acquired at the beginning of the year at a cost of $600,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 16 years and an estimated residual value of $60,000.
a. What was the depreciation for the first year?
b. Assuming the equipment was sold at the end of the second year for $480,000 determine the gain or loss on the sale of the equipment.
c. Journalize the entry to record the sale.
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a 75000 600000 116 2 600000 125 b 20625 gain computed as follows Cost ...View the full answer
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Related Book For
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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