In 2002, Deka, Inc. purchased equipment with an estimated 10-year life for $60,000. The residual value was
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Question:
In 2002, Deka, Inc. purchased equipment with an estimated 10-year life for $60,000. The residual value was estimated at $15,000. Deka uses straight-line depreciation and applies the half-year convention.
On April 18, 2004, Deka closed one of its plants and sold this equipment for $50,000
Requirement:
Under these assumptions compute the following for this equipment:
1-Book Value at the date of sale in 2004 (Hint compute the Accumulated depreciation)
2- Gain or loss on the sale in 2004
3-Prepare the general journal to record the disposal of asset in 2004.
Related Book For
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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