Question
On January 1, 20X1, Rigby Inc. purchased equipment costing $75,000. The equipment is estimated to have a residual value of $6,000 and a four-year useful
On January 1, 20X1, Rigby Inc. purchased equipment costing $75,000. The equipment is estimated to have a residual value of $6,000 and a four-year useful life. A) Prepare the entry on 12/31/X2 to record depreciation expense for 20X2, assuming the straight-line depreciation method is used.
Date | Account Name | Debit | Credit |
12/31/X2 |
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B) If the asset had been placed into service on May 1, 20X1 instead of January 1, 20X1, what would be the depreciation expense recorded for the year ending 12/31/X1, assuming the straight-line method is used? Round to the nearest whole dollar.
Straight-line depreciation expense for the year ending 12/31/X1: Answer $____
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