Depreciation (Part B only with work)

V. Depreciation (28 pts.) Version 1 a. On Oct. 1, 2019, X Co. (a calendar-year company) purchased a piece of equipment for $264,000. b. Assume that X Co. (from previous page) has been using SL depreciation and the company makes The equipment was expected to have a life of 10 years and a salvage value of $24,000. Determine adjusting entries to record depreciation at year end (December 31). On September 1, 2020, the the amount of depreciation expense for 2019 and 2020 for each of the following methods. (3 pts company decides to sell the equipment for $222,000. Calculate the gain or loss on sale of equipment each) (4 pts) 2019 2020 Straight-line 6000 24000 13200 Double-declining balance 50 160 Sum-of-the-years'-digits 10909 3 9 273 SL 2019 = ( 264000 - 24000) / 10 x (7 ) = 6,000 220 = ( 2 6 4, 000 - 24000) / 10= 241000 = 20% ' / 10) X2 DD 2019 = 2 64 00 0 X . 2 x ( 3 /10 ) = 13200 2020 = 264, 000 - 1 3, 200 x 1 2 = 50160 SOYD 2019 = ( 2 64,000 - 24000 ) x 10/SJ x ( 2 ) = 10, 909 9155 2020 = ( 264,000 - 24,000 ) x9155 = 39, 273 10 ( 10 + 1 ) 12:55