On January 1, 2016, Bérubé Ltée acquired equipment costing $60,000. It was estimated at that time that
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(a) Calculate the equipment's accumulated depreciation and carrying amount at the beginning of 2018.
(b) What is the amount of the gain or loss that would arise when one third of the equipment was sold on January 1, 2018, for cash proceeds of $17,000?
(c) What is the depreciation expense from January 1, 2018, to September 30, 2018, and what is the carrying amount of the equipment at September 30, 2018?
(d) On October 1, the company bought more equipment costing $10,000 that also had a useful life of five years and no residual value. What is the depreciation for the three months ending December 31, 2018?
(e) On the last day of 2018, the company sold some equipment for a loss of $2,000. After recording the sale, the balances in the Equipment and the Accumulated Depreciation accounts were $38,000 and $18,000, respectively. Based on this information, what were the proceeds received when this equipment was sold?
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Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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