Question

Equipment was acquired at the beginning of the year at a cost of $215,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 18 years and an estimated residual value of $39,500.
a. What was the depreciation for the first year?
b. Assuming the equipment was sold at the end of the eighth year for $128,000, determine the gain or loss on the sale of the equipment.
c. Journalize the entry to record the sale.



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  • CreatedMay 07, 2012
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