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Bendix Corporation's schedule of depreciable assets at December 31, Year 3, is presented below. Bendix records a full year's depreciation expense in the year of
Bendix Corporation's schedule of depreciable assets at December 31, Year 3, | |||||||
is presented below. Bendix records a full year's depreciation expense in the | |||||||
year of an asset's acquisition and no depreciation expense in the year of an asset's disposition. | |||||||
The estimated useful life of each depreciable asset is 5 years. | |||||||
Balances below represent ledger amounts prior to recording depreciation for year 4. | |||||||
Accumulated | Acquisition | Salvage | Depreciable | ||||
Equipment | Cost | Depreciation | Date | Value | Cost | ||
A | $120,000 | $0 | Year 1 | $10,000 | $110,000 | ||
B | 60,000 | 0 | Year 1 | 8,000 | $52,000 | ||
C | 50,000 | 0 | Year 2 | 6,000 | $44,000 | ||
$230,000 | $0 | $24,000 | |||||
A. Complete the schedule of depreciation for Year 4 showing depreciation for each asset. | |||||||
B. Prepare the journal to record depreciation for Year 4. | |||||||
C. On January 1, Year 5 Bendix sold Asset A For $30,000. Record the JE for the sale | |||||||
D. On January 2, Year 5 Bendix sold Asset B for $10,000. Record the JE for the sale. |
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