Take me to the text

Equipment was purchased on January $1,2015$ for $$80,000.$ The asset is expected to last for four years, at which time the estimated residual value will be $$11,000.$

Required

a$)$ Prepare a table showing the amount of depreciation expense each year, accumulated depreciation to date and net book value. The company uses straight$-$line depreciation.

Do not enter dollar signs or commas in the input boxes.

Round all dollar figure answers to the nearest whole number.

Year Cost of Long$-$Term Asset Depreciation Expense Accumulated Depreciation Net Book Value

$2015$ $$80,000$ $Answer

$17250$

$Answer

$Answer

$2016$ $$80,000$ $Answer

$Answer

$Answer

$2017$ $$80,000$ $Answer

$Answer

$Answer

$2018$ $$80,000$ $Answer

$Answer

$Answer

b$)$ The asset was sold for $$14,000$ on the first day of $2019.$ Prepare the journal entry to record the sale.

Enter all debit accounts in alphabetical order.

Enter all credit accounts in alphabetical order.

Date Account Title and Explanation Debit Credit

Jan $1$ Answer

Accumulated Depreciation

Answer

Answer

Cash

Answer

Answer

Equipment

Answer

Answer

Gain on Disposal of Asset

Answer

Sale of equipment for cash

c$)$ Using the same purchase information at the beginning of the question, prepare the table assuming that the company used double$-$declining$-$balance depreciation.

Year Net Book Value at the Beginning of the Year Depreciation Expense Accumulated Depreciation Net Book Value at the End of the Year

$2015$ $Answer

$Answer

$Answer

$Answer

$2016$ $Answer

$Answer

$Answer

$Answer

$2017$ $Answer

$Answer

$Answer

$Answer

$2018$ $Answer

$Answer

$Answer

$Answer

d$)$ Using the same purchase information and residual value at the beginning of the question, assume that the company uses the units$-$of$-$production method. The asset can produce one million units. Prepare the depreciation table.

Year Cost of Long$-$Term Asset Units Produced Depreciation Expense Accumulated Depreciation Net Book Value

$2015$ $$80,000120,000$ $Answer

$Answer

$Answer

$2016$ $$80,000130,000$ $Answer

$Answer

$Answer

$2017$ $$80,000200,000$ $Answer

$Answer

$Answer

$2018$ $$80,000310,000$ $Answer

$Answer

$Answer