Equipment acquired on January 6 at a cost of $401,000 has an estimated useful life of 18
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Equipment acquired on January 6 at a cost of $401,000 has an estimated useful life of 18 years and an estimated residual value of $25,100.
a. What was the annual amount of depreciation for the Years 1–3 using the straight-line method of depreciation?
b. What was the book value of the equipment on January 1 of Year 4?
c. Assuming that the equipment was sold on January 3 of Year 4 for $315,000, journalize the entry to record the sale.
d. Assuming that the equipment had been sold on January 3 of Year 4 for $342,000 instead of $310,000, journalize the entry to record the sale.
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Related Book For
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
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