Equipment acquired on January 3, 2003, at a cost of $96,000, has an estimated useful life of

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Equipment acquired on January 3, 2003, at a cost of $96,000, has an estimated useful life of 6 years and an estimated residual value of $6,000.

a. What was the annual amount of depreciation for the years 2003, 2004, and 2005, using the straight-line method of depreciation?

b. What was the book value of the equipment on January 1, 2006?

c. Assuming that the equipment was sold on January 2, 2006, for $38,000, journalize the entry to record the sale.

d. Assuming that the equipment had been sold on January 2, 2006, for $53,000 instead of $38,000, journalize the entry to record the sale.

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Accounting

ISBN: 978-0324188004

21st Edition

Authors: Carl s. warren, James m. reeve, Philip e. fess

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Question Posted: Nov 07, 2012 07:01 AM

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Equipment acquired on January 3, 2003, at a cost of $96,000, has an estimated useful life of

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a 2003 depreciation expense 15000 96000 6000 6 2004 depreciation expense 1500...View the full answer

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