Assignment 3: P9-6A Altona Limited purchased delivery equipment on March 1, 2016, for $130,000 cash. At...

Assignment 3:

P9-6A Altona Limited purchased delivery equipment on March 1, 2016, for $130,000 cash. At that time, the equipment was estimated to have a useful life of five years and a residual value of $10,000. The equipment was disposed of on November 30, 2018. Altona uses the diminishing-balance method at one time the straight-line depreciation rate, has an August 31 year end, and makes adjusting entries annually.

Instructions

(a) Record the acquisition of equipment on March 1, 2016.

(b) Record depreciation at August 31, 2016, 2017, and 2018.

(c) Record the disposal of the equipment on November 30, 2018, under each of the following independent assumptions:

It was sold for $60,000.
It was sold for $80,000.
It was retired for no proceeds.

Expert Solution

Here the SLM depreciation is calculated for the application if WDV method as follows

ekkarill92 answered 1 year ago

P9-6A Altona Limited purchased delivery equipment on March 1, 2016, for $130,000 cash. At that time,...

P9-6A Altona Limited purchased delivery equipment on March 1, 2016, for $130,000 cash. At that time, the equipment was estimated to have a useful life of five years and a residual value of $10,000. The equipment was disposed of on November 30, 2018. Altona uses the diminishing-balance method at one time the straight-line depreciation rate, has an August 31 year end, and makes adjusting entries annually. Please show steps. Instructions (a) Record the acquisition of equipment on March 1, 2016....

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