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 31^st.

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.

Answer rating: 100% (QA)

To record the sale of equipment under the given conditions using straightline depreciation and doubl... View the full answer