Problem 6-27 (Static) Determine depreciation method used and date of asset acquisition; record disposal of asset LO 3, 6
Problem 6-27 (Static) Determine depreciation method used and date of asset acquisition; record disposal of asset LO 3,6 The balance sheets of Tully Corp.showed the following al December 31, 2020 and 2019: Terengey 31, Equipment les scauleed depreciation or $200,000 zl Deceber 31, 2020, and $15.00 ar leerber 21.209. $ 180.no $ 270,000 Required: a. If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of depreciation Expense for 2020? b. Assure the same facts as in parta, and assume that the estimated useful life of the equipment is four years and the estimated salvage value is $60,000. Determine: 1. What the original cost of the enm pment was 2. What depreciation method is apparently being used. 3. When the equipment was acquired. C. Assume that the equipment is sold on December 31, 2020, for $141,500. Prepare the horizontal model and record the journal entry for the sale of the equipment indicate the financial statement effect. Complete this question by entering your answers in the tabs below. Required A Required D: Reguited B2 Required 3 Required C1 Required C2 Assume that the equipment is sold on December 31, 2020, for $141,600. Prepare the horzontal model for the sale of the equipment. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative finan , Balance Sheet Income Statement Assets Liabilities + Stockholders' Equity Net Income Revenues Expenses Cash 141,600 Equipment 120.000 Accumu ated depreciation 240.000 - Problem 6-27 (Static) Determine depreciation method used and date of asset acquisition; record disposal of asset LO 3,6 The balance sheets of Tully Corp.showed the following al December 31, 2020 and 2019: Terengey 31, Equipment les scauleed depreciation or $200,000 zl Deceber 31, 2020, and $15.00 ar leerber 21.209. $ 180.no $ 270,000 Required: a. If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of depreciation Expense for 2020? b. Assure the same facts as in parta, and assume that the estimated useful life of the equipment is four years and the estimated salvage value is $60,000. Determine: 1. What the original cost of the enm pment was 2. What depreciation method is apparently being used. 3. When the equipment was acquired. C. Assume that the equipment is sold on December 31, 2020, for $141,500. Prepare the horizontal model and record the journal entry for the sale of the equipment indicate the financial statement effect. Complete this question by entering your answers in the tabs below. Required A Required D: Reguited B2 Required 3 Required C1 Required C2 Assume that the equipment is sold on December 31, 2020, for $141,600. Prepare the horzontal model for the sale of the equipment. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative finan , Balance Sheet Income Statement Assets Liabilities + Stockholders' Equity Net Income Revenues Expenses Cash 141,600 Equipment 120.000 Accumu ated depreciation 240.000
