In: Accounting
4 Tranquil Company bought a crane for $100,000 on January 1, 2019. Additional ordinary and necessary costs to install the crane for service include: $4000 sales tax and a $1000 delivery charge. The crane has an estimated useful life of 10 years and a salvage value of $5,000. What entry would Tranquil make to record one year’s depreciation expense on December31, 2019 using a. the straight line b. the double declining depreciation methods? c. What entry would Tranquil make if it sold the crane at the end of 2019 for $89,000 and used the straight-line method of depreciation? D what entry would Tranquil make if it sold the crane at the end 0f 2019 for 89,000 and used the double-decling balance method of depreciation?
Note
If you have any queries kindly post a comment, i will solve it earliest.
If you satisfied with my answer, kindly give a thumbs up, it will help to encourage me.