1. On January 2, the Hartley Clinic purchased a new surgical laser for $90,000. The estimated...

Transcribed Image Text:

1. On January 2, the Hartley Clinic purchased a new surgical laser for $90,000. The estimated salvage value is $5,000. The laser has a useful life of five years, and the clinic expects to use it 10,000 hours. It was used 1,600 hours in year 1; 2,200 hours in year 2; 2,400 hours in year 3; 1,800 hours in year 4; 2,000 hours in year 5. Complete the following: (6 points) Straight-line method: Cost Depreciation Expense Accumulated Deprec. Book Value Year 1 2. 3 4. Units-of-activity method: Cost Depreciation Expense Accumulated Denree. Book Value Year 1 4. Double-declining-balance method: Cost Depreciation Expense Accumulated Depres Book Value Year 1 4. 2. A truck which cost $30,000 and on which $22,000 of accumulated depreciation had been recorded was disposed of on January 3. Calculate the amount of the gain or loss and write the journal entry necessary to record the disposal under each of the following independent assumptions: (4 points) It was scrapped for no value a. Date Account Titles Debit Credit b. It was sold for $12,000. Date Account Titles Debit Credit It was sold for $7,500 Date Account Titles Debit Credit 1. On January 2, the Hartley Clinic purchased a new surgical laser for $90,000. The estimated salvage value is $5,000. The laser has a useful life of five years, and the clinic expects to use it 10,000 hours. It was used 1,600 hours in year 1; 2,200 hours in year 2; 2,400 hours in year 3; 1,800 hours in year 4; 2,000 hours in year 5. Complete the following: (6 points) Straight-line method: Cost Depreciation Expense Accumulated Deprec. Book Value Year 1 2. 3 4. Units-of-activity method: Cost Depreciation Expense Accumulated Denree. Book Value Year 1 4. Double-declining-balance method: Cost Depreciation Expense Accumulated Depres Book Value Year 1 4. 2. A truck which cost $30,000 and on which $22,000 of accumulated depreciation had been recorded was disposed of on January 3. Calculate the amount of the gain or loss and write the journal entry necessary to record the disposal under each of the following independent assumptions: (4 points) It was scrapped for no value a. Date Account Titles Debit Credit b. It was sold for $12,000. Date Account Titles Debit Credit It was sold for $7,500 Date Account Titles Debit Credit

Answer rating: 100% (QA)

Part 1 Part 2 a It was scrapped for no value Date Account title Debit Credit Jan 3 Accumulated depre... View the full answer