Equipment acquired on January 6 at a cost of $358,800, has an estimated useful life of 10
Question:
Equipment acquired on January 6 at a cost of $358,800, has an estimated useful life of 10 years and an estimated residual value of $46,800.
a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?
Year | Depreciation Expense |
Year 1 | $ |
Year 2 | $ |
Year 3 | $ |
b. What was the book value of the equipment on January 1 of Year 4?
$
c. Assuming that the equipment was sold on January 3 of Year 4 for $251,900, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
d. Assuming that the equipment had been sold on January 3 of Year 4 for $270,500 instead of $251,900, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac