Question
On April 1, 2014, Mattson Industries purchased new equipment at a cost of $325,000. The useful life of this equipment was estimated at 5 years,
On April 1, 2014, Mattson Industries purchased new equipment at a cost of $325,000. The useful life of this equipment was estimated at 5 years, with a residual value of $25,000.
Compute the annual depreciation expense for each year until this equipment becomes fully depreciated under each depreciation method listed below.
Straight-line, with depreciation for fractional years rounded to the nearest whole month.
200 percent declining-balance.
Assume that the equipment is sold at the end of December 2016, for $176,250 cash. Prepare the journal entry to record the sale of the equipment under the straight-line method.
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