On January 1, 2024, Apex Inc.'s ledger shows its long-lived asset of $79,000 (at cost) and...

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On January 1, 2024, Apex Inc.'s ledger shows its long-lived asset of $79,000 (at cost) and accumulated depreciation of $28,125. When the capital asset was purchased, Apex Inc. estimated that its useful life would be 12 years. On July 1, 2024, Apex Inc. paid $18,000 for property betterment and, as a result, it estimated its residual value had increased from $4,000 to $6,000. In addition, the useful life had increased by 3 years. Apex Inc. uses straight-line depreciation. On October 1, 2026, Apex Inc. sold the long-lived asset for $45,000. Requirements 1. What was the age of the long-lived asset? What was the annual depreciation amount? 2. Prepare the journal entry to record the betterment. 3. Prepare the adjusting entry for the depreciation expense at the end of the year. 4. What is the impact on the statement of earnings after the betterment has completed? 5. Prepare the journal entry to record the disposal of the long-lived asset. On January 1, 2024, Apex Inc.'s ledger shows its long-lived asset of $79,000 (at cost) and accumulated depreciation of $28,125. When the capital asset was purchased, Apex Inc. estimated that its useful life would be 12 years. On July 1, 2024, Apex Inc. paid $18,000 for property betterment and, as a result, it estimated its residual value had increased from $4,000 to $6,000. In addition, the useful life had increased by 3 years. Apex Inc. uses straight-line depreciation. On October 1, 2026, Apex Inc. sold the long-lived asset for $45,000. Requirements 1. What was the age of the long-lived asset? What was the annual depreciation amount? 2. Prepare the journal entry to record the betterment. 3. Prepare the adjusting entry for the depreciation expense at the end of the year. 4. What is the impact on the statement of earnings after the betterment has completed? 5. Prepare the journal entry to record the disposal of the long-lived asset.