(A) Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $35,500 The equipment was depreciated using the double declining balance method based on an estimated useful life of ten years and an estimated residual value of $690 a What was the depreciation for the first year b Assuming the equipment was sold at the end of year 2 for $8,740, determine the gain or loss on the sale of the equipment c Journalize the entry to record the sale If an amount box does not require an entry, leave it blank (B) Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of $86,400 has an estimated residual value of $6,000 and an estimated useful life of 20 years a Determine the amount of annual depreciation by the straight line method b Determine the amount of depreciation for the first and second years computed by the double declining balance method Do not round the double declining balance rate If required, round your answers to the nearest dollar Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $35,500 The equipment was depreciated using the double declining balance method based on an estimated useful life of ten years and an estimated residual value of $690 a What was the depreciation for the first year $ 14,200 b Assuming the equipment was sold at the end of year 2 for $8,740, determine the gain or loss on the sale of the equipment $ 220 Gain C Journalize the entry to record the sale If an amount box does not require an entry, leave it blank Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of $86,400 has an estimated residual value of $6,000 and an estimated useful life of 20 years a Determine the amount of annual depreciation by the straight line method b Determine the amount of depreciation for the first and second years computed by the double declining balance method Do not round the double declining balance rate If required, round your answers to the nearest dollar Depreciation Year 1 Year 2

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(A) Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $35,500. The equipment was depreciated using the double-declining-balance

(A) Sale of Equipment

Equipment was acquired at the beginning of the year at a cost of $35,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $690.

a. What was the depreciation for the first year?

b. Assuming the equipment was sold at the end of year 2 for $8,740, determine the gain or loss on the sale of the equipment.

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

image text in transcribed (B)

Depreciation by Two Methods

A storage tank acquired at the beginning of the fiscal year at a cost of $86,400 has an estimated residual value of $6,000 and an estimated useful life of 20 years.

a. Determine the amount of annual depreciation by the straight-line method.

b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar.

image text in transcribed

Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $35,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $690. a. What was the depreciation for the first year? $ 14,200 b. Assuming the equipment was sold at the end of year 2 for $8,740, determine the gain or loss on the sale of the equipment. $ 220 Gain C. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of $86,400 has an estimated residual value of $6,000 and an estimated useful life of 20 years. a. Determine the amount of annual depreciation by the straight-line method. b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar. Depreciation Year 1 Year 2