The Blue Company purchased equipment on October 1, 2020. Assuming the cost of the equipment is $70,000, the residual value is $6,000, and uses the units of production method for depreciation.

During its useful life, the equipment was expected to be used for 10,000 hours. Anticipated annual hourly use was as follows: 1300 hours in 2020, 2800 hours in 2021, 3300 hours in 2022, 1900 hours in 2023 and 700 hours in 2024.

1) What is the depreciation per unit of production? $ Answer

2) What is accumulated depreciation at December 31, 2021? $ Answer

3) What is depreciation expense for the 2022 year? $ Answer

4) What is the carrying value of the asset at December 31, 2024? $ Answer

You were asked to prepare the journal entry to record the sale of the above equipment on December 31, 2022.

Is it a gain or loss if the equipment was sold for $30,000? Answer LOSS or GAIN

How much is the gain or loss? $ Answer