Question
Equipment was acquired at the beginning of the year at a cost of $77,220. The equipment was depreciated using the straight-line method based upon an
Equipment was acquired at the beginning of the year at a cost of $77,220. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,560.
Required:
a. | What was the depreciation expense for the first year? |
b. | Assuming the equipment was sold at the end of the second year for $58,320, determine the gain or loss on sale of the equipment. |
c. | Journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. |
Equipment was acquired at the beginning of the year at a cost of $77,220. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,560.
Required:
a. | What was the depreciation expense for the first year? |
b. | Assuming the equipment was sold at the end of the second year for $58,320, determine the gain or loss on sale of the equipment. |
c. | Journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. |
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First Questions
a. What was the depreciation expense for the first year?
Depreciation expense |
b. Assuming the equipment was sold at the end of the second year for $58,320, determine the gain or loss on sale of the equipment.
Sale of the equipment |
c. Journalize the entry to record the sale on December 31. Refer to the Chart of Accounts for exact wording of account titles. |
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