Question
Q#4-A ( 04 marks) The Outpatient clinic of eastside Hospital acquired X ray equipment for 79,000 with an expected useful life of 5 year and
Q#4-A ( 04 marks)
The Outpatient clinic of eastside Hospital acquired X ray equipment for 79,000 with an expected useful life of 5 year and a 4000 expected residual value Sum of year digits method was used. The equipment was sold at the end of the fourth year for 12,000 cash
Required
- Compute the gain or loss on the sale.
- Show the journal entries for the transaction in requirement #1
- Repeat 2a assuming that the cash price was 7,000 instead of 12,000 ( use Straight line method )
Q# 4-B ( 04 marks )
ASF and Company acquired a Machine for 100,000 with an expected useful life of 5 year and a 10,000 expected residual value Prepare a tabular comparison of the annual depreciation and book value for each year under straight line , % method 20% and sum of the year digits method
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