Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please please please make sure when u submit your answer that the image is it to screen or slightly smaller so I can see the

image text in transcribedplease please please make sure when u submit your answer that the image is it to screen or slightly smaller so I can see the full answer and work. I have struggled with this ALOT on Chegg. please!

Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $318,800, has an estimated useful life of 7 years and an estimated residual value of $41,600. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Year Depreciation Expense Year 1 $ 39,600 Year 2 39,600 Year 3 39,600 b. What was the book value of the equipment on January 1 of Year 4? $ 118,800 Feedback Check My Work Asset cost minus residual value equals depreciable cost. Asset cost minus accumulated depreciation equals book value. The Accumulated Depreciation account is a permanent account and therefore the balance in the account grows each year of the asset's life. C. Assuming that the equipment was sold on January 3 of Year 4 for $190,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash Accumulated Depreciation Equipment llll Loss on Sale of Equipment 10,000 Equipment Feedback Check My Work Compare the book value amount to the sale price. If the book value is less than the sale price, the asset was sold for a gain. If the book value is more than the sale price, the equipment was sold for a loss. d. Assuming that the equipment had been sold on January 3 of Year 4 for $204,000 instead of $190,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash Accumulated Depreciation Equipment Equipment Gain on Sale of Equipment 104,800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Making Accountability Work Dilemmas For Evaluation And For Audit

Authors: Marie-Louise Bemelmans-Videc, Jeremy Lonsdale, Burt Perrin

1st Edition

1412865557, 978-1412865555

More Books

Students also viewed these Accounting questions

Question

Define response time.

Answered: 1 week ago