Question

Stan's Lumber Mill sold two pieces of equipment in 2017. The following information pertains to the two pieces of equipment:
Purchase Useful Salvage Depreciation Sales
Cost    Date    Life    Value    Method    Date Sold    Price   
#1 $86,000 7/1/13 5 yrs.    $6,000 Straight-line    7/1/17 $20,000
#2 $95,000 1/1/16 5 yrs.    $5,000 Double-declining 12/31/17 $37,000
   -balance

Instructions
(a) Compute the depreciation on each piece of equipment from the purchase date to the date of disposal (make a schedule - showing each year & each piece of equipment separately)
(b) Prepare the journal entries in 2017 to record 2017 depreciation and the sale of each piece of equipment.

Answer 1