168. On July 1st, Harding Construction purchases a bulldozer for $330,000. The equipment has a 9 year life with a residual value of $15,000. Harding uses straight-line depreciation.(a) Calculate the depreciation expense and provide the journal entry for the first year ending December 31st.(b) Calculate the third year and provide the journal entry for the third year ending December 31st.(c) Calculate the last year’s depreciation expense and provide the journal entry for the last year.
Annual depreciation is:
Acquisition cost
$330,000
Less residual value
15,000
Depreciable amount
315,000
Divided by service life in years
9
Annual depreciation
$35,000
(b) Journal entry for the third year. (It is also the same for all years other than the first and last year):
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