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Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $347,800 has an estimated useful life of 9 years and an estimated
Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $347,800 has an estimated useful life of 9 years and an estimated residual value of $45,400. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Depreciation Expense Year Year 1 33,600 / Year 2 33,600 Year 3 33,600 b. What was the book value of the equipment on January 1 of Year 4? 247,000 c. Assuming that the equipment was sold on January 3 of Year 4 for $234,700, Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Jan. 3 Cash 234,700 0 Accumulated Depreciation-Equipment Loss on Sale of Equipment 100,800 0 12.300 0 Equipment 0 347,800 d. Assuming that the equipment had been sold on January 3 of Year 4 for $251,900 instead of $234,700, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Jan. 3 Cash 251,900 O Accumulated Depreciation-Equipment 0 Equipment X Gain on Sale of Equipment
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