Equipment acquired on January 2, 2011 at a cost of $273,500 has an estimated useful life of eight years and an estimated residual value of $35,500.
a) What was the annual amount of depreciation for the years 2011,2012, and 2013 assumming straight line method used?
b) What was the book value of the equipment on January 1, 2014?
c) Assuming that the equipmnet was sold on January 2. 2014, for $189,000, journalize the entryto record the scale.