Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years and an estimated residual value of $25,000 Question Content Area a What was the annual amount of depreciation for the Years 1 3 using the straight line method of depreciation Year Depreciation Expense Year 1 $fill in the blank d7456b05b05102e 1 Year 2 $fill in the blank d7456b05b05102e 2 Year 3 $fill in the blank d7456b05b05102e 3 b What was the book value of the equipment on January 1 of Year 4 $fill in the blank d7456b05b05102e 4 Question Content Area c Assuming that the equipment was sold on January 3 of Year 4 for $300,000, journalize the entry to record the sale If an amount box does not require an entry, leave it blank Year 4 Jan 3 Accounts PayableCashDepreciation Expense EquipmentEquipmentGain on Sale of Equipment Select Select Accounts PayableAccounts ReceivableAccumulated Depreciation EquipmentDepreciation Expense EquipmentGain on Sale of Equipment Select Select Accounts PayableDepreciation Expense EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment Select Select Accumulated Depreciation EquipmentCashEquipmentGain on Sale of EquipmentLoss on Sale of Equipment Select Select Question Content Area d Assuming that the equipment had been sold on January 3 of Year 4 for $325,000 instead of $300,000, journalize the entry to record the sale If an amount box does not require an entry, leave it blank Year 4 Jan 3 CashDepreciation Expense EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment Select Select Accounts PayableAccumulated Depreciation EquipmentDepreciation Expense EquipmentEquipmentLoss on Sale of Equipment Select Select Accumulated Depreciation EquipmentCashDepreciation Expense EquipmentEquipmentLoss on Sale of Equipment Select Select Accumulated Depreciation EquipmentCashDepreciation Expense EquipmentGain on Sale of EquipmentLoss on Sale of equipment Select Select

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Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years and an estimated

Disposal of Fixed Asset

Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years and an estimated residual value of $25,000.

Question Content Area

a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?

Year	Depreciation Expense
Year 1	$fill in the blank d7456b05b05102e_1
Year 2	$fill in the blank d7456b05b05102e_2
Year 3	$fill in the blank d7456b05b05102e_3

b. What was the book value of the equipment on January 1 of Year 4? $fill in the blank d7456b05b05102e_4

Question Content Area

c. Assuming that the equipment was sold on January 3 of Year 4 for $300,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Year 4 Jan. 3	Accounts PayableCashDepreciation Expense-EquipmentEquipmentGain on Sale of Equipment	- Select -	- Select -
	Accounts PayableAccounts ReceivableAccumulated Depreciation-EquipmentDepreciation Expense-EquipmentGain on Sale of Equipment	- Select -	- Select -
	Accounts PayableDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated Depreciation-EquipmentCashEquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -

Question Content Area

d. Assuming that the equipment had been sold on January 3 of Year 4 for $325,000 instead of $300,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Year 4 Jan. 3	CashDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accounts PayableAccumulated Depreciation-EquipmentDepreciation Expense-EquipmentEquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentEquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentGain on Sale of EquipmentLoss on Sale of equipment	- Select -	- Select -