Equipment acquired on January 6, 2013, at a cost of $417,390, has an estimated useful life of 17 years and an estimated residual value of $68,805.
Required:
a. What was the annual amount of depreciation for the years 2013, 2014, and 2015 using the straight-line method of depreciation?
2013 $____________
2014 $_____________
2015 $____________
b. What was the book value of the equipment on January 1, 2016?
$____________________
c. Assuming that the equipment was sold on January 3, 2016, for $339,855, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.
JOURNAL
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JOURNAL
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DATE
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DESCRIPTION
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POST. REF.
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DEBIT
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D. Assuming that the equipment had been sold on January 3, 2016, for $368,885 instead of $339,855, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.
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DESCRIPTION
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POST. REF.
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DEBIT
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