Wed Dec 6 11 ntUntakenAssignment.do?assignmentid 686752 CengageNoww2 1 Online te

Question

Wed Dec 6 11 ntUntakenAssignment.do?assignmentid 686752 CengageNoww2 1 Online teaching and learning resource from Cengage Leaming Disposal of Flixed Asset Equipment acquired on January 6 at a cost of $211,100, has an estimated useful life of 9 years and an estimated residual value of $27,500. a. What was the annual amount of depreciation for the Years 1-3 using the straight-ine method of depreciation? Depreciation Expense Year Year 1 Year 2 Year 3 b. What was the book value of the equipment on January 1 of Year 47 c. Assuming that the equipment was sold on January 3 of Year 4 for %142,400, journalize the entry to record the sale.ar an amount box does not require an entry, that the equipment had been sold on January 3 of Year 4 for $152,900 instead of $142,400, journalize the entry to record the s ale. Ir an amount box does not require an entry, leave it blank d. Assuming MacBook Air

Explanation / Answer

as per SLM method every year dep amtount remains same . Cost 211100 residual value 27500 183600 Life 9 Dep amount 20400 for each 1-3 = dep would be   20400 at the year 4 , book value would be as below opening closing cost 211100 211100 3 yrs dep 82500 4 yrs dep 110000 Book value 128600 101100 if sold for 142400 assuming 3 yrs completed we will calculated dep of 3 yrs then difference of book value and sale value would be gain or loss book vlaue post 3 yrs 128600 sale value 142400 gain 13800 JV Bank ac dr 142400 To Equipment 128600 To Gain 13800 if sold for 152900 Bank Ac Dr 152900 TO Equipment 128600 To gain 24300

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