Question
On January 1, 2019, Lucy's Auto Repair purchased diagnostic equipment for $18,000. The equipment had an estimated salvage value of $3,000 and a five-year life.
On January 1, 2019, Lucy's Auto Repair purchased diagnostic equipment for $18,000.
The equipment had an estimated salvage value of $3,000 and a five-year life.
Assuming that the company depreciates the asset on a straight-line basis, prepare a
depreciation schedule for the first two years.
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Cost | Depreciation Expense | Accumulated Depreciation |
Book Value |
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2019
2020
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The above equipment was sold on December 31, 2020 for $11,000. Calculate the gain/loss on the disposal, and write the journal entry necessary to record the disposal.
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Managerial Accounting Creating Value in a Dynamic Business Environment
Authors: Ronald Hilton, David Platt
10th edition
78025664, 978-0078025662
