EasyDelivery Corporation purchased equipment on July 18 of Year 6 for $500,000. The estimated useful life is
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Question:
EasyDelivery Corporation purchased equipment on July 18 of Year 6 for $500,000. The estimated useful life is 8 years, and the residual value is $50,000. On March 24 of Year 12, they sold the equipment for $150,000. Depreciation is rounded to the nearest month.The company's year-end is December 31st.
Required:
Provide all journal entries necessary for the sale of the equipment under the following conditions. You must also show your clearly labelled calculations.
- EasyDelivery Corporation uses straight line depreciation.
- EasyDelivery Corporation uses double declining balance depreciation.
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