Question
When solving this can y'all please show the math that you did to get the correct answer. I am confused why I keep keeping portions
When solving this can y'all please show the math that you did to get the correct answer. I am confused why I keep keeping portions of this question incorrect!
Depreciation by Two Methods; Sale of Fixed Asset
New lithographic equipment, acquired at a cost of $625,000 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $53,700. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected.
In the first week of the fifth year, on March 4, the equipment was sold for $91,500.
Required:
1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods:
a. Straight-line method
Year | Depreciation Expense | Accumulated Depreciation, End of Year | Book Value, End of Year |
1 | $ | $ | $ |
2 | $ | $ | $ |
3 | $ | $ | $ |
4 | $ | $ | $ |
5 | $ | $ | $ |
b. Double-declining-balance method
Year | Depreciation Expense | Accumulated Depreciation, End of Year | Book Value, End of Year |
1 | $ | $ | $ |
2 | $ | $ | $ |
3 | $ | $ | $ |
4 | $ | $ | $ |
5 | $ | $ | $ |
2. Journalize the entry to record the sale, assuming double-declining balance method is used. If an amount box does not require an entry, leave it blank.
Cash | |||
Accumulated Depreciation-Equipment | |||
Equipment | |||
Gain on Sale of Equipment |
3. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $78,600 instead of $91,500. If an amount box does not require an entry, leave it blank.
Cash | |||
Accumulated Depreciation-Equipment | |||
Loss on Sale of Equipment | |||
Equipment |
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