Question
As of January 1, 2014, ABC purchased equipment for $26,100. The equipment has an expected useful life of 5 years, and a salvage value of
As of January 1, 2014, ABC purchased equipment for $26,100. The equipment has an expected useful life of 5 years, and a salvage value of $900.
d. What is the book value of the equipment on December 31, 2015, after this revision of depreciation estimates?
e. Assume that on December 31, 2015, the equipment is sold to another company at $20,000. Prepare the journal entry to record the sale of the equipment.
f. Now suppose that instead of selling the equipment on December 31, 2015, the equipment caught fire and was destroyed. The equipment was not insured. What would the journal entry be?
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Principles Of Financial Accounting
Authors: Jerry J. Weygandt, Lorena Mitrione, Michaela Rankin, Keryn Chalmers, Paul D. Kimmel
3rd Edition
0730302296, 978-0730302292
