Equipment was purchased on January 1, 2020 for $70,000. The asset is expected to last for...

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Equipment was purchased on January 1, 2020 for $70,000. The asset is expected to last for four years, at which time the estimated residual value will be $11,000. Required a) Prepare a table showing the amount of depreciation expense each year, accumulated depreciation to date and net book value. The company uses straight-line depreciation. Do not enter dollar signs or commas in the input boxes. Round all dollar figure answers to the nearest whole number. Year Cost of Long-Term Asset Depreciation Expense Accumulated Depreciation Net Book Value 2020 $70,000 $14750 2021 $70,000 $14750 2022 $70,000 $14750 2023 $70,000 $14750 $14750 $55250 $29500 $40500 $44250 $25750 59000 11000 b) The asset was sold for $16,000 on the first day of 2024. Prepare the journal entry to record the sale. Enter all debit accounts in alphabetical order. Enter all credit accounts in alphabetical order. Date Account Title and Explanation Jan 1 Accumulated Depreciation Cash Equipment Gain on Disposal of Asset To record sale of equipment for cash Debit Credit 59000 16000 70000 5000 c) Using the same purchase information at the beginning of the question, prepare the table assuming that the company used double-declining-balance depreciation. Year Net Book Value (Beginning of Year) Depreciation Expense Accumulated Depreciation Net Book Value (End of Year) 2020 $70000 2021 2022 $35000 $17500 2023 11000 35000 17500 $35000 52500 6500 $59000 $ 0 59000 $35000 17500 11000 Correct Mark 1.00 out of 1.00 d) Using the same purchase information and residual value at the beginning of the question, assume that the company uses the units-of-production method. The asset can produce one million units. Prepare the depreciation table. Year Cost of Long-Term Asset Units Produced Depreciation Expense Accumulated Depreciation Net Book Value 2020 $70,000 180,000 $ $ 2021 $70,000 210,000 $ $ 2022 $70,000 130,000 $ $ 2023 $70,000 250,000 $ $ Equipment was purchased on January 1, 2020 for $70,000. The asset is expected to last for four years, at which time the estimated residual value will be $11,000. Required a) Prepare a table showing the amount of depreciation expense each year, accumulated depreciation to date and net book value. The company uses straight-line depreciation. Do not enter dollar signs or commas in the input boxes. Round all dollar figure answers to the nearest whole number. Year Cost of Long-Term Asset Depreciation Expense Accumulated Depreciation Net Book Value 2020 $70,000 $14750 2021 $70,000 $14750 2022 $70,000 $14750 2023 $70,000 $14750 $14750 $55250 $29500 $40500 $44250 $25750 59000 11000 b) The asset was sold for $16,000 on the first day of 2024. Prepare the journal entry to record the sale. Enter all debit accounts in alphabetical order. Enter all credit accounts in alphabetical order. Date Account Title and Explanation Jan 1 Accumulated Depreciation Cash Equipment Gain on Disposal of Asset To record sale of equipment for cash Debit Credit 59000 16000 70000 5000 c) Using the same purchase information at the beginning of the question, prepare the table assuming that the company used double-declining-balance depreciation. Year Net Book Value (Beginning of Year) Depreciation Expense Accumulated Depreciation Net Book Value (End of Year) 2020 $70000 2021 2022 $35000 $17500 2023 11000 35000 17500 $35000 52500 6500 $59000 $ 0 59000 $35000 17500 11000 Correct Mark 1.00 out of 1.00 d) Using the same purchase information and residual value at the beginning of the question, assume that the company uses the units-of-production method. The asset can produce one million units. Prepare the depreciation table. Year Cost of Long-Term Asset Units Produced Depreciation Expense Accumulated Depreciation Net Book Value 2020 $70,000 180,000 $ $ 2021 $70,000 210,000 $ $ 2022 $70,000 130,000 $ $ 2023 $70,000 250,000 $ $