Sale of equipment OBJ. 3 Equipment was acquired at the beginning of the year at a cost

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Sale of equipment OBJ. 3 Equipment was acquired at the beginning of the year at a cost of $600,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 16 years and an estimated residual value of $60,000.

a. What was the depreciation for the first year?

b. Assuming the equipment was sold at the end of the second year for $480,000, determine the gain or loss on the sale of the equipment.

c. Journalize the entry to record the sale.

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Financial And Managerial Accounting

ISBN: 9781305267831,9781305267848

13th Edition

Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac

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