Question
Equipment acquired on January 8 at a cost of $182,810, has an estimated useful life of 19 years, has an estimated residual value of $8,200,
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Equipment acquired on January 8 at a cost of $182,810, has an estimated useful life of 19 years, has an estimated residual value of $8,200, and is depreciated by the straight-line method.
a. What was the book value of the equipment at December 31 the end of the fourth year? $
b. Assuming that the equipment was sold on April 1 of the fifth year for 137,117.
1. Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required.
2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations.
Check My Work2 more Check My Work uses remaining.
Alaska Mining Co. acquired mineral rights for $20,656,000. The mineral deposit is estimated at 129,100,000 tons. During the current year, 19,350,000 tons were mined and sold.
a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places. $
b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
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