Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $34,500. The equipment was depreciated using the double-declining-balance method

Sale of Equipment

Equipment was acquired at the beginning of the year at a cost of $34,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of five years and an estimated residual value of $670.

a.What was the depreciation for the first year?

$ _______________

b.Assuming the equipment was sold at the end of year 3 for $7,970, determine the gain or loss on the sale of the equipment.

$ _______________

Gain

c.Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

_________ ___________ __________

_________ ___________ __________

_________ ___________ __________

_________ ___________ __________

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

Accounting Terminology

Authors: Michael P Griffin

1st Edition

1423229371, 9781423229377

More Books

Students also viewed these Accounting questions