Disposal of Fixed Asset

Equipment acquired on January 6 at a cost of $220,800, has an estimated useful life of 8 years and an estimated residual value of $28,800.

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 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 $141,400, 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 $151,800 Instead of $141,400, Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank