Equipment acquired on January 3, 2005, at a cost of ($ 360,000), has an estimated useful life

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Equipment acquired on January 3, 2005, at a cost of \(\$ 360,000\), has an estimated useful life of 12 years, has an estimated residual value of \(\$ 30,000\), and is depreciated by the straightline method.

a. What was the book value of the equipment at December 31, 2008, the end of the year?

b. Assuming that the equipment was sold on April 1, 2009, for \(\$ 220,000\), journalize the entries to record (1) depreciation for the three months until the sale date, and (2) the sale of the equipment.

objs. 4,5

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Financial Accounting

ISBN: 9780324380675

10th Edition

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

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