Disposal of Fixed Asset

Equipment acquired on January 6 at a cost of $414,000 has an estimated useful life of 10 years and an estimated residual value of $54,000.

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 c8c189f66fc2041_1
Year 2	$fill in the blank c8c189f66fc2041_2
Year 3	$fill in the blank c8c189f66fc2041_3

b. What was the book value of the equipment on January 1 of Year 4? $fill in the blank c8c189f66fc2041_4

c. Assuming that the equipment was sold on January 3 of Year 4 for $290,700, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Jan. 3		fill in the blank 9e2a45057feb068_2	fill in the blank 9e2a45057feb068_3
		fill in the blank 9e2a45057feb068_5	fill in the blank 9e2a45057feb068_6
		fill in the blank 9e2a45057feb068_8	fill in the blank 9e2a45057feb068_9
		fill in the blank 9e2a45057feb068_11	fill in the blank 9e2a45057feb068_12

d. Assuming that the equipment had been sold on January 3 of Year 4 for $312,100 instead of $290,700, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Jan. 3		fill in the blank 6be68b0aff8ff95_2	fill in the blank 6be68b0aff8ff95_3
		fill in the blank 6be68b0aff8ff95_5	fill in the blank 6be68b0aff8ff95_6
		fill in the blank 6be68b0aff8ff95_8	fill in the blank 6be68b0aff8ff95_9
		fill in the blank 6be68b0aff8ff95_11	fill in the blank 6be68b0aff8ff95_12