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Equipment acquired on January 8 at a cost of $136,150 has an estimated useful life of 15 years, has an estimated residual value of $8,050,
Equipment acquired on January 8 at a cost of $136,150 has an estimated useful life of 15 years, has an estimated residual value of $8,050, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fifth year? b. Assuming that the equipment was sold on April 1 of the sixth year for $84,635, journalize the entries to record (1) depreciation for the 3 months until the sale date and (2) the sale of the equipment. General Journal b. Assuming that the equipment was sold on April 1 of the sixth year for $84,635, journalize the entries to record the following: General Journal Instructions First Question a. What was the book value of the equipment at December 31 the end of the fifth year? 1. Depreciation for the 3 months until the sale date. $ DATE DESCRIPTION 1 2 2. The sale of the equipment. DATE DESCRIPTION 1 2 3 JOURNAL JOURNAL POST. REF. DEBIT CREDIT ASSETS LIABILITIES ACCOUNTING EQU POST. REF. DEBIT CREDIT ASSETS LIABILITIES
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