Entries for Sale of Fixed Asset

Equipment acquired on January $8$ at a cost of $$168,000$ has an estimated useful life of $18$ years, has an estimated residual value of $$15,000,$ and is depreciated by the straight$-$line method.

Question Content Area

a$.$ What was the book value of the equipment at December $31$ the end of the fourth year?

$fill in the blank $94$dde$8$f$91$f$9$bfa$7\_1$

Feedback Area

Feedback

Book value is the initial cost of the fixed asset minus the accumulated depreciation.

Question Content Area

b$.$ Assume that the equipment was sold on April $1$ of the fifth year for $$125,000.$

$1.$ Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank.

blank

Question Content Area

$2.$ Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank.

blank