Question
2. On Jan 1, Year 1, Big Rock Brewery purchased a production equipment for $45,000. Big Rock expects the equipment to have a useful
2. On Jan 1, Year 1, Big Rock Brewery purchased a production equipment for $45,000. Big Rock expects the equipment to have a useful life of five years and a residual value of $5,000. The depreciation method used was straight-line. On December 31, Year 4, the equipment was sold for $15,000 in cash. Calculate the carrying amount of the equipment on the date of the sale: Straight-line deprecation expense annually: Show your calculation here Accumulated depreciation at December 31, Year 4: Show your calculation here Carrying amount (net book value) on the date of sale at December 31, Year 4: Show your calculation here Record the sale of the van on December 31, Year 4. Date Dec 31, Year 4 General Journal Debit Credit
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