On Jan 1, year 3, Peterson sold equipment to Silver for $120,000, which was originally purchased on
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On Jan 1, year 3, Peterson sold equipment to Silver for $120,000, which was originally purchased on Jan,1,year 1,for $100,000. Peterson was depreciating the equipment over 10 years using straight-line depreciation. There was no salvage value. Silver decides to depreciate the equipment over eight years.
also using straight-line depreciation with no salvage value. Assume all other appropriate year-end and income tax journal entries have been made.
Eliminating JE at Dec.31,year3:
Dr. Gain on sale 40,000
Cr. AD 15,000
Cr. Depreciation expense 5,000
Cr. Equipment 20,000
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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