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Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $270,500, has an estimated useful life of 7 years and an
Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $270,500, has an estimated useful life of 7 years and an estimated residual value of $35,300. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Year Year 1 Year 2 Year 3 Depreciation Expense $ $ $ b. What was the book value of the equipment on January 1 of Year 4? c. Assuming that the equipment was sold on January 3 of Year 4 for $161,200, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. d. Assuming that the equipment had been sold on January 3 of Year 4 for $173,100 instead of $161,200, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
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