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Disposal of Fixed Asset Equipment acquired on January 3,20Y1, at a cost of $427,500, has an estimated useful life of 20 years and an estimated
Disposal of Fixed Asset Equipment acquired on January 3,20Y1, at a cost of $427,500, has an estimated useful life of 20 years and an estimated residual value of $59,850. a. What was the annual amount of depreciation for the years 20Y1, 20Y2, and 20Y3, using the straight-line method of depreciation? Round annual depreciation to the nearest dollar and use this amount in your follow-on calculations. b. What was the book value of the equipment on January 1,20Y4 ? $ For decreases in accounts or outflows of cash, enter your answers as negative numbers. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. c. Assuming that the equipment was sold on January 2,20Y4, for $171,000, illustrate the effects on the accounts and financial statements of the sale. d. Assuming that the equipment was sold on January 2,20Y4, for $534,375 instead of $171,000, illustrate the effects on the accounts and financial statements of the sale. rry 3,20Y1, at a cost of $427,500, has an estimated useful ated residual value of $59,850. unt of depreciation for the years 20Y1, 20Y2, and 20Y3, d of depreciation? Round annual depreciation to the s amount in your follow-on calculations. of the equipment on January 1, 20Y4? or outflows of cash, enter your answers as negative activity is affected, select "No effect" from the orresponding number entry box blank. fent was sold on January 2,20Y4, for $171,000, illustrate nd financial statements of the sale. hent was sold on January 2, 20Y4, for $534,375 instead of ts on the accounts and financial statements of the sale
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