Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help with the rest of the boxes and show all work! Disposal of Fixed Asset Equipment acquired n ]anuary 8, 20Y1, at a oast
Please help with the rest of the boxes and show all work!
Disposal of Fixed Asset Equipment acquired n ]anuary 8, 20Y1, at a oast of $445,000, has an estimated useful life of 14 years and an estimated residual value of89,000- a. What was the annual amount of depreciation for the years 20Y1, 20Y2, and 20Y3, using the straight-line method of depresation? Round annual depreciation to the nearest dollar and use this amount in your follow-on calculations Depreciation expense 2011 25,429 25,429 25,429 v 20Y3 b. What was the book valuc of the equipment an lanuary 1, 20Y47 368,713 V for decreases in accounts or outilows of cash, enter your answers as negative numbers. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. c. Assuming that the equipment was sald on January 7, 20Y4, for $133,50, illustrate the effects on the accounts and financial statements of the sala Balance Sheet Income Cash Flows Accumulated deepreciatio -eequipm-hi = No effect Relained earning Jan. 7 7. 133,500 76,287 Statement of Cash Flows Income Statement Investing 133,500 Loss on disposal of fixed assols d. Assuming that the equipment was sold on January 7, 20Y4, for $578,500 'nstead of133,500, illustrate the effects on the ooooumts dnd finanoal statements of the sale. Ralance Sheet Inconie Assets Liabilities+ Stockholders' Equity Cash Flows Cash v an. 7. 578,500 76,287 Statement of Cash Flows Income Statement Investing 578,500v Gain on disposal of fixed assls 578,500 XStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started