1 On July 31, 2021, Yellow Ribbon Co purchased equipment at at cost of $500,000. They are estimating their equipment 2 will produce 300,000 units over 5-year useful life and have residual value of $10,000. 3 The company has December 31 fiscal year end and has a policy of recording 1/2 year depreciation in the year of acquisition 4 The equipment was sold on February 28,2023 for $350,000 5 6 Instructions to follow for Parts a) to f): SHOW YOUR WORK! 7 a) Calculate depreciation under straight line method for 2021 and 2022 using straight line method 8 LO 11 12 13 4 5 6 7 8 b) What is the Carrying amount on December 31, 2022 after all the journal entries have been recorded? Show the individual amounts 9

1 On July 31, 2021, Yellow Ribbon Co purchased equipment at at cost of $500,000. They are estimatine their equipment 2 will produce 300,000 units over 5 -year useful life and have residual value of $10,000 The company has December 31 fiscal year end and has a policy of recordine 1/2 year depreciation in the year of acquisition The equipment was sold on February 28,2023 for $350,000 instructions to follow for Parts a) to f): SHOW YOUR WOHK! a) Calculate depreciation under straight line method for 2021 and 2022 using straight line method b) What is the Carrying amount on December 31,2022 after all the journal entries have been recorded? Show the individual amounts