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Sale of Asset Equipment acquired on January 9 , 2 0 Y 3 , at a cost of $ 7 2 5 , 0 0
Sale of Asset
Equipment acquired on January at a cost of $ has an estimated useful life of years, an estimated residual value of $ and is depreciated by the straightline method.
a What was the book value of the equipment at the end of the fifth year, December Round your interim calculations and final answer to the nearest dollar.
$ Enter account decreases, cash outflows, and the income statement effects that decrease net income as negative amounts. However, for contra asset accounts, enter account increases as a negative value. Round annual depreciation to the nearest dollar and use this amount in your followon calculations. If no account or activity is affected, select No effect" from the dropdown and leave the corresponding number entry box blank.
Assuming that the equipment was sold on July for $ illustrate the effects on the accounts and financial statement of depreciation or the six months until the sale date.
Financial Statement Effects
Balance Sheet
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