Question
Disposing of depreciable asset at a gain or a loss On July 1 st of Year 1, Superior Snow Shovels purchased a new piece of
Disposing of depreciable asset at a gain or a loss
On July 1st of Year 1, Superior Snow Shovels purchased a new piece of equipment for $100,000. The equipment had a useful life of 8 years and an expected residual value of $20,000. The company expected that the machine would operate for 4,000 hours in those 8 years.
The company has a fiscal year end of December 31.
On October 1st of Year 3, the Company sells the equipment for $70,000.
The machine operated for the following hours:
Year 1 100
Year 2 250
Year 3 200
Required:
Fill in the table included as part of the Disposal of depreciable asset template for the following methods:
a) Straight line
b) Units of production
c) Double declining balance
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