Cauliflower Limited purchased an equipment at $400,000 on 1 January 2021. It has been depreciated using...

 

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Cauliflower Limited purchased an equipment at $400,000 on 1 January 2021. It has been depreciated using the double-declining-balance method based on an estimated residual value of $60,000 and an estimated useful life of 4 years. On 31 March 2022, the equipment was sold for $250,000 cash. The year-end of Cauliflower Limited is 31 December. Required: (a) Compute the accumulated depreciation for the equipment as at 31 March 2022. (b) Prepare journal entries to record the disposal of equipment on 31 March 2022. Narration is NOT required. Cauliflower Limited purchased an equipment at $400,000 on 1 January 2021. It has been depreciated using the double-declining-balance method based on an estimated residual value of $60,000 and an estimated useful life of 4 years. On 31 March 2022, the equipment was sold for $250,000 cash. The year-end of Cauliflower Limited is 31 December. Required: (a) Compute the accumulated depreciation for the equipment as at 31 March 2022. (b) Prepare journal entries to record the disposal of equipment on 31 March 2022. Narration is NOT required.

Answer rating: 100% (QA)

Accumulated depreciation March 31 2022 225000 DoubleDeclining ... View the full answer