Question
Equipment was acquired on January 1, 2021, for $15,000 with an estimated four-year life and $1,000 residual value. The company uses straight-line depreciation. Record the
Equipment was acquired on January 1, 2021, for $15,000 with an estimated four-year life and $1,000 residual value. The company uses straight-line depreciation. Record the gain or loss if the equipment was sold on December 31, 2023, for $5,000.
A)
| Cash | $5,000 |
|
| Accumulated Depreciation | $10,500 |
|
| Equipment |
| $15,000 |
| Gain |
| $500 |
B)
| Cash | $5,000 |
|
| Equipment |
| $4,500 |
| Gain |
| $500 |
C)
| Cash | $5,000 |
|
| Equipment |
| $3,500 |
| Gain |
| $1,500 |
D)
| Cash | $5,000 |
|
| Accumulated Depreciation | $7,000 |
|
| Loss | $3,000 |
|
| Equipment |
| $15,000 |
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
978-0470423684
