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Equipment acquired on January 6 at a cost of $513,540, has an estimated useful life of 20 years and an estimated residual value of $67,940.
Equipment acquired on January 6 at a cost of $513,540, has an estimated useful life of 20 years and an estimated residual value of $67,940.
| A. | What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? |
| B. | What was the book value of the equipment on January 1 of Year 4? |
| C. | Assuming that the equipment was sold on January 3 of Year 4 for $428,880, 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 of Year 4 for $459,160 instead of $428,880, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. |
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