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a. Annual depreciation, using Straight-Line depreciation b. Gain or loss on sale c. Necessary journal entries for sale 1 Building purchased on 1/1/xx 900,000
a. Annual depreciation, using Straight-Line depreciation b. Gain or loss on sale c. Necessary journal entries for sale 1 Building purchased on 1/1/xx 900,000 Estimated Useful life 20 years Estimated residual value 80,000 At end of 3rd year sold building for 775,000 Annual Depreciation Gain/Loss on Sale (dollar amount) Account Journal Entry Debit Credit 2 Equipment purchased 7/1/15 Estimated Useful life Estimated residual value Sold 12/31/18 Annual Depreciation Gain/Loss on Sale (dollar amount) Account 100,000 7/1/2015 5 years 15,000 35,000 12/13/2018 Journal Entry Debit Credit
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