18-20

OBJ. 4 EX 3-18 Adjustment for depreciation The estimated amount of depreciation on equipment for the current year is $8,200. Journalize the adjusting entry to record the depreciation. OBJ.4 EX 3-19 Determining fixed asset's book value The balance in the equipment account is $3,150,000, and the balance in the accumulated depreciation-equipment account is $2,075,000. a. What is the book value of the equipment? b. Does the balance in the accumulated depreciation account mean that the equipment's loss of value is $2,075,000? Explain. OBJ.4 EX 3-20 Book value of fixed assets In a recent balance sheet, Microsoft Corporation reported Property, Plant, and Equipment of $27,804 million and Accumulated Depreciation of $14,793 million. a. What was the book value of the fixed assets? Would the book value of Microsoft's fixed assets normally approximate their market values