On January 1, 2021, Garett manufacturing company purchased equipment for $95,000. Garett paid $5000 to have the machine installed. The equipment is expected to have a five-year useful life and a salvage value of $10,000.

A) at what dollar amount should this equipment be recorded in Garretts accounting records?

B) compute depreciation expense for 2021 and 2022 using straight line depreciation.

C) what is the book value at the beginning of 2023? D) assume the equipment was sold on January 1, 2023 for $65,000. Compute the amount of gain or loss from the sale.

E) prepare the journal entry to record the sale of the equipment using the information in part D.

3. On January 1, 2021, Garrett Manufacturing Company purchased equipment for $95,000. Garrett paid $5,000 to have the machine installed. The equipment is expected to have a 5 year useful life and a salvage value of $10,000 Required: a) At what dollar amount should this equipment be recorded in Garrett's accounting records? b) Compute depreciation expense for 2021 and 2022 using straight line depreciation. c) What is the book value at the beginning of 2023? d) Assume the equipment was sold on January 1, 2023, for $65,000. Compute the amount of gain or loss from the sale. e) Prepare the journal entry to record the sale of the equipment using the information in part d). Date Account Titles DebitCredit