Question
In: Accounting
Footloose Limited acquired furniture and fittings on 1 July 2019 for $42 000.... Footloose Limited acquired...
Footloose Limited acquired furniture and fittings on 1 July 2019 for $42 000.... Footloose Limited acquired furniture and fittings on 1 July 2019 for $42 000. The estimated useful life of the furniture and fittings at acquisition date was 8 years and the residual value was $2000. The company sold all the furniture and fittings on 1 January 2025 for $18 000. The journal entry to reflect the sale is:
Solutions
Expert Solution
If questions is silent about the rate of depreciation and also mention about the salvage value and useful life we prefer the SLM method of depreciation.
At the time of sale we value the WDV of that cost and compare
with the sales consideration so that we can find the gain or loss
on sale of that asset.
ekkarill92 answered 1 year agoRelated Solutions
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