Equipment acquired on January 8, 2011, at a cost of $420,000, has an estimated useful life of
Question:
Equipment acquired on January 8, 2011, at a cost of $420,000, has an estimated useful life of 15 years, has an estimated residual value of $30,000, and is depreciated by the straight-line method.
a. What was the book value of the equipment at December 31, 2014, the end of the year?
b. Assuming that the equipment was sold on October 1, 2015, for $275,000, journalize the entries to record
(1) Depreciation for the nine months until the sale date,
(2) The sale of the equipment.
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a Cost of equipment 420000 Accumulated depreciation at December 31 2014 4 years at 260...View the full answer
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Related Book For
Corporate Financial Accounting
ISBN: 978-1133952411
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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