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Equipment acquired on January 6, 2013, at a cost of $405,115, has an estimated useful life of 16 years and an estimated residual value of
Equipment acquired on January 6, 2013, at a cost of $405,115, has an estimated useful life of 16 years and an estimated residual value of $61,595.
Required: | |
A. | What was the annual amount of depreciation for the years 2013, 2014, and 2015 using the straight-line method of depreciation? |
B. | What was the book value of the equipment on January 1, 2016? |
C. | Assuming that the equipment was sold on January 3, 2016, for $325,545, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. |
D. | Assuming that the equipment had been sold on January 3, 2016, for $353,980 instead of $325,545, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. |
A. What was the annual amount of depreciation for the years 2013, 2014, and 2015 using the straight-line method of depreciation?
2013 depreciation expense | |
2014 depreciation expense | |
2015 depreciation expense |
B. What was the book value of the equipment on January 1, 2016?
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