Equipment acquired on January 2, 2013 at a cost of $305,500 has an estimated useful life of eight years and an estimated residual value of $24,500. Required: (1) What is the annual amount of depreciation for the years 2013, 2014, and 2015, assuming the straight-line method of depreciation is used? (2) What was the book value of the equipment on January 1, 2016? (3) Assuming that the equipment was sold on January 2, 2016, for $178,000, journalize the entry to record the sale. (4) Assuming that the equipment had been sold on January 2, 2016, for $204,000 instead of $178,000, journalize the entry to record the sale.

Equipment acquired on January 2, 2013 at a cost of $305,500 has an estimated useful life of eight years and an estimated residual value of $24,500. Required: (1) What is the annual amount of...

Equipment acquired on January 2, 2013 at a cost of $305,500 has an estimated useful life of eight years and an estimated residual value of $24,500.

Required:

(1)	What is the annual amount of depreciation for the years 2013, 2014, and 2015, assuming the straight-line method of depreciation is used?

(2)	What was the book value of the equipment on January 1, 2016?

(3)	Assuming that the equipment was sold on January 2, 2016, for $178,000, journalize the entry to record the sale.

(4)	Assuming that the equipment had been sold on January 2, 2016, for $204,000 instead of $178,000, journalize the entry to record the sale.

Jun 08, 2022

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Equipment acquired on January 2, 2013 at a cost of $305,500 has an estimated useful life of eight years and an estimated residual value of $24,500. Required: (1) What is the annual amount of...

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