In: Accounting
Disposal of Fixed Asset
Equipment acquired on January 6 at a cost of $234,600, has an estimated useful life of 10 years and an estimated residual value of $30,600.
a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?
Year | Depreciation Expense |
Year 1 | $ |
Year 2 | $ |
Year 3 | $ |
b. What was the book value of the equipment on
January 1 of Year 4?
$
c. Assuming that the equipment was sold on January 3 of Year 4 for $164,700, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
d. Assuming that the equipment had been sold on January 3 of Year 4 for $176,900 instead of $164,700, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
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