Disposal of fixied asset

Equipment acquired on January $6$ at a cost of $$375,400$ has an estimated useful life of $8$ vears and an estimated chandiar value of $$49,000.$

a$.$ What was the annual amount of dopructation for Years $1-3$ using the draghth me method of depreciation?

Year Depreciation E

Ytart $40\mathrm{.}800$

year $2,40\mathrm{.}800$

Hear $3$

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

$253,000$

Check MV Work

Asset cost minus residual value equals depreciable cost.

Asset cost minus accumulated depreciation equals book value. The Accumulated Depreciation account is a permanent account and therefore the balance in the account grows each vear of the asset's life.

c$.$ Assuming that the equipment was sold on January $3$ of Year $4$ for $$240,400,$ Joumalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

lanuary $3$

$240,400$

Loss on Sale of Equipment

$?$

$375,400$

Check Mu Work

Compare the book value amount to the sale price. If the book value is less than the sale price, the asset was sold for a gain. If the book value is more than the sale price, the equipment was sold for a loss.

d$.$ Assuming that the equipment had been sold on January $3$ of Year $4$ for $$258,100$ instead of $$240,400,$ journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

January $3$

Equipment

$375,400$

Gain on Sale of Equipment

$??$

Check Mv Work

Compare the book value amount to the sale price. If the book value is less than the sale price, the asset was sold for a gain. If the book value is more than the sale price, the equipment was sold for a loss.