Instructions

Equipment acquired on January $8,2013,$ at a cost of $$142,430,$ has an estimated useful life of $16$ years, has an estimated residual value of $$7,550,$ 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 $$99,465,$ 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.

Starting question

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