Question
the beginning of the year at a cost of $78,660. The equipment was depreciated using the straight-line method based on an estimated useful life of
the beginning of the year at a cost of $78,660. The equipment was depreciated using the straight-line method based on an estimated useful life of six years and an estimated residual value of $7,920.
Required:
| (a) | What was the depreciation expense for the first year? |
| (b) | Assuming the equipment was sold at the end of the second year for $59,486, determine the gain or loss on sale of the equipment. |
| (c) | Journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. |
What was the depreciation expense for the first year?
Assuming the equipment was sold at the end of the second year for $59,486, determine the gain or loss on sale of the equipment.
| Journalize the entry to record the sale on December 31. Refer to the Chart of Accounts for exact wording of account titles. |
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
978-0078025587
