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show work Sale of an Asset Equipment acquired on January 9, 20Y3, at a cost of $733,000, has an estimated useful life of 19 years,

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Sale of an Asset

Equipment acquired on January 9, 20Y3, at a cost of $733,000, has an estimated useful life of 19 years, an estimated residual value of $161,260, and is depreciated by the straight-line method.

a. What was the book value of the equipment at the end of the fifth year, December 31, 20Y7? Round your interim calculations and final answer to the nearest dollar.

For decreases in accounts or outflows of cash, enter your answers as negative numbers. Round annual depreciation to the nearest dollar and use this amount in your follow-on calculations. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank.

b1. Assuming that the equipment was sold on July 1, 20Y8, for $366,500, illustrate the effects on the accounts and financial statement of depreciation for the six months until the sale date.

Balance Sheet
Assets = Liabilities + Stockholders' Equity

Accounts receivable

Equipment

Cash

No effect

-

Accounts receivable

Accumulated depreciation - equipment

Cash

No effect

=

Accounts payable

Accumulated depreciation - equipment

Capital stock

No effect

+

Capital stock

Loss on disposal of fixed Assets

Retained earnings

No effect

July 1. fill in the blank fill in the blank fill in the blank fill in the blank
Statement of Cash Flows Income Statement

b2. Assuming that the equipment was sold on July 1, 20Y8, for $366,500, illustrate the effects on the accounts and financial statement of the sale of the equipment.

Balance Sheet
Assets = Liabilities + Stockholders' Equity

Accounts receivable

Accumulated depreciation -equipment

Cash

No effect

+

Accounts payable

Equipment

Supplies

No effect

-

Accounts payable

Accumulated depreciation -equipment

Depreciation expense

No effect

=

Accounts payable

Accumulated depreciation - equipment

Capital stock

No effect

+

Capital stock

Retained earnings

Sales

No effect

July 1. fill in the blank 19 fill in the blank 20 fill in the blank 21 fill in the blank 22 fill in the blank 23
Statement of Cash Flows Income Statement

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