171.A copy machine acquired on March 1, 2011 with a cost of $1,410 has an estimated useful life of 3 years. Assuming that it will have a residual value of $150, determine the depreciation for the first and second year by the straight-line method.

172.A copy machine acquired on March 1, 2011 with a cost of $705 has an estimated useful life of 4 years. Assuming that it will have a residual value of $125, determine the depreciation for the first year by the double-declining-balance method.

First year depreciation = $293.75 [$352.50 x (10 /12)]

1$705$70550%*$352.50

173.Computer equipment (office equipment) purchased 6 1/2 years ago for $170,000, with an estimated life of 8 years and a residual value of $10,000, is now sold for $60,000 cash. (Appropriate entries for depreciation had been made for the first six years of use.) Journalize the following entries:

(a)Record the depreciation for the one-half year prior to the sale, using the straight-line method.

(b)Record the sale of the equipment.

(c)Assuming that the equipment had been sold for $25,000 cash, prepare the entry for (b) above to record the sale.

Answer rating: 100% (QA)

To solve these problems well use the information provided for each scenario 171 StraightLine Depreci... View the full answer