will rate

Disposal of Fixed Asset Equipment acquired on January 3, 20Y1, at a cost of $140,000, has an estimated useful life of 5 years and an estimated residual value of $15,000. a. What was the annual amount of depreciation for the years 2041, 2042, and 2043, using the straight-line method of depreciation? Depreciation expense 20Y1 25,000 2012 25,000 20Y3 25,000 b. What was the book value of the equipment on January 1, 20Y4? 65,000 For decreases in accounts or outflows of cash, enter your answers as negative numbers. If nd account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. c. Assuming that the equipment was sold on January 2, 2014, for $63,500, illustrate the effects on the accounts and financial statements of the sale. Balance Sheet Assets Liabilities Stockholders' Equity + No effect Cash Retained earnings M Accumulated depreciation - equipment + Equipment Jan. 2. 63,500 Income Statement Statement of Cash Flows X Loss on disposal of fixed assets Investing 63,500 Nraviour Na For decreases in accounts or outflows of cash, enter your answers as negative numbers. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. c. Assuming that the equipment was sold on January 2, 2014, for $63,500, illustrate the effects on the accounts and financial statements of the sale. Balance Sheet Assets Liabilities Stockholders' Equity Cash - Equipment Accumulated depreciation - equipment No effect + Retained earnings Jan. 2. 63,500 X Statement of Cash Flows Income Statement Investing 63,500 Loss on disposal of fixed asse X d. Assuming that the equipment was sold on January 2, 20Y4, for $71,000 instead of $63,500, illustrate the effects on the accounts and financial statements of the sale. Balance Sheet Assets Liabilities + Stockholders' Equity Cash + Equipment Accumulated depreciation - equipment No effect + Retained earnings 71,000 Jan. 2. Income Statement Statement of Cash Flows Gain on disposal of fixed assets Investing 71,000