Equipment acquired on January 8, 2013, at a cost of $165,730, has an estimated useful life of 17 years, has an estimated residual value of $8,650, and is depreciated by the straight-line method.

Required:

A.

What was the book value of the equipment at December 31, 2016, the end of the year?

B.

Assuming that the equipment was sold on July 1, 2017, for $118,345, journalize the entries to record (1) depreciation for the six months until the sale date, and (2) the sale of the equipment. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

2. the sale of the equipment

PAGE 2

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4

Revision of Depreciation

A building with a cost of $675,000 has an estimated residual value of $135,000, has an estimated useful life of 36 years, and is depreciated by the straight-line method.

a. What is the amount of the annual depreciation? $

b. What is the book value at the end of the twentieth year of use? $

c. If at the start of the twenty-first year it is estimated that the remaining life is 20 years and that the residual value is $35,000, what is the depreciation expense for each of the remaining 20 years? $

Partial-Year Depreciation

Sandblasting equipment acquired at a cost of $47,000 has an estimated residual value of $3,000 and an estimated useful life of 20 years. It was placed in service on October 1 of the current fiscal year, which ends on December 31.

If necessary, round your answers to the nearest cent.

a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method.

	Depreciation
Year 1	$
Year 2	$

b. Determine the depreciation for the current fiscal year and the following fiscal year by the double-declining-balance method.

	Depreciation
Year 1	$
Year 2	$