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Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $236,000 has an estimated useful life of 9 years and an estimated
Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $236,000 has an estimated useful life of 9 years and an estimated residual value of $30,800. 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 $ Year 2 $ Year 3 $ 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 $159,200, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Jan. 3 d. Assuming that the equipment had been sold on January 3 of Year 4 for $171,000 instead of $159,200, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Jan. 3 Accumulated Depreciation-Equipment Cash Depreciation Expense-Equipment Gain on Sale of Equipment Loss on Sale of Equipment
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