SEE ATTACHED IMAGE AT BOTTOM -------- Sale of Equipment Equipment was acquired at the beginning of...

SEE ATTACHED IMAGE AT BOTTOM

--------

Sale of Equipment

Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $43,305.

a. What was the depreciation for the first year? Round your answer to the nearest cent.
$

b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $103,197.

Round your answer to the nearest cent and enter as a positive amount.
$

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

Solutions

Expert Solution


a)	Depreciation per year by SLM: = (Original Cost - Salvage value )/Estimated life
	= (637500-43305)/9
	66021.67

	Depreciation for the first year would be $66021.67


b)	Note : Calculated book value of machine


	Original Cost	637,500.00
	Less: Depreciation for 8 years	528,173.36	(66021.67*8 Yr)

	Net book value	109,326.64

	Less :Sale price	103,197.00

	Loss on sale of machine	(6,129.64)

	Loss on sale of machine $6129.64

c)	General Journal	Debit	Credit
	CASH	103,197.00
	Loss on Sale of Equipment	6,129.64
	Accumulated Depreciation	528,173.36
	Equipment		637,500.00
	(To record sale of machine)


	Do rate answer if satisfied, else feel free to ask query in comment box.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Sale of Equipment Equipment was acquired at the beginning of the year at a cost of...

Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $34,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $660. a. What was the depreciation for the first year? b. Assuming the equipment was sold at the end of year 2 for $7,860, determine the gain or loss on the sale of the equipment.

Sale of Equipment Equipment was acquired at the beginning of the year at a cost of...

Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $29,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $570. a. What was the depreciation for the first year? $ b. Assuming the equipment was sold at the end of year 2 for $6,820, determine the gain or loss on the sale of the equipment. $ c. Journalize the...

Sale of Equipment Equipment was acquired at the beginning of the year at a cost of...

Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $575,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $44,745. a. What was the depreciation for the first year? Round your answer to the nearest cent. $ b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it...

Equipment was acquired at the beginning of the year at a cost of $38,500. The equipment...

Equipment was acquired at the beginning of the year at a cost of $38,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $750. a. What was the depreciation for the first year? $ b. Assuming the equipment was sold at the end of year 2 for $8,900, determine the gain or loss on the sale of the equipment. $ Loss Feedback Book value is the asset...

Equipment was acquired at the beginning of the year at a cost of $75,720. The equipment...

Equipment was acquired at the beginning of the year at a cost of $75,720. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,920. Required: a. What was the depreciation expense for the first year? b. Assuming the equipment was sold at the end of the second year for $57,370, determine the gain or loss on sale of the equipment. c. Journalize the entry to record...

Equipment was acquired at the beginning of the year at a cost of $79,560. The equipment...

Equipment was acquired at the beginning of the year at a cost of $79,560. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,800. a. What was the depreciation expense for the first year? $ b. Assuming the equipment was sold at the end of the second year for $60,100, determine the gain or loss on sale of the equipment. $ c. Journalize the entry to...

Equipment was acquired at the beginning of the year at a cost of $40,000. The equipment...

Equipment was acquired at the beginning of the year at a cost of $40,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $780. a. What was the depreciation for the first year? b. Assuming the equipment was sold at the end of year 2 for $9,240, determine the gain or loss on the sale of the equipment. $fill in the blank c. Journalize the entry...

Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment...

Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $40,600. a. What was the depreciation for the first year? Round your answer to the nearest cent. b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the...

Hirsch Company acquired equipment at the beginning of 2017 at a cost of $128,000. The equipment...

Hirsch Company acquired equipment at the beginning of 2017 at a cost of $128,000. The equipment has a five-year life with no expected salvage value and is depreciated on a straight-line basis. At December 31, 2017, Hirsch compiled the following information related to this equipment: Expected future cash flows from use of the equipment $ 109,300 Present value of expected future cash flows from use of the equipment 95,000 Fair value (selling price less costs to dispose) 90,910 Assume that...

Hirsch Company acquired equipment at the beginning of 2017 at a cost of $124,300. The equipment...

Hirsch Company acquired equipment at the beginning of 2017 at a cost of $124,300. The equipment has a five-year life with no expected salvage value and is depreciated on a straight-line basis. At December 31, 2017, Hirsch compiled the following information related to this equipment: Expected future cash flows from use of the equipment $ 106,400 Present value of expected future cash flows from use of the equipment 90,700 ...

Subjects