CALCULATON PRINTER VERSION BACK NEXT Exercise 7-9 Shown below is a tabular summary relating to equipment that was purchased for cash by a company on the first day of the current year. The equipment was deprecated on a straight-line basis with an estimated useful ife of 10 years and a salvage value of $90. Part of the equipment was sold on the last day of the current year for cash proceeds. Use the information in the tabular summary to derive the missing amounts: (a) Purchase of equipment on January 1. What was the cash paid? (b) Depreciation recorded on December 31. What was the depreciation expense? (c) Sale of part of the equipment on December 31. What was the gain on disposal? (If a transaction causes a decrease in Assets, Liabilities ar Stockholders' Equity, place a negative sin for parentheses) in front of the amount entered for the particular Asset Liability ar Equity item that was reduced.) Assets Liabilities + Stockholders' Equity Retained Earnings Cash + Equipment - Accum. Depr.- Equip. - + Common Stock + Revenue Expense Dividend Jan. 1 -1110 (a) $1,250 Dec. 31 -$116 (h) Dec. 31 474 50 (c) $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT LINK TO TEXT