1. On August 16, 2016, Cory Corp. acquires a new piece of equipment for $80,000....
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Accounting
1. On August 16, 2016, Cory Corp. acquires a new piece of equipment for $80,000. Bryant depreciates equipment over ten years, assumes the residual value to be 5% of the purchase price, and uses a half-year convention in the year of acquisition. Record the journal entries for depreciation for 2017 and 2018.
Year
Account Name And Explanation
Debit
Credit
2017
Depreciation expense
$7,600
Accumulated depreciation on New equipment
$7,600
(Depreciation charged for 2017)
2018
Depreciation expense
$7,600
Accumulated depreciation on New equipment
$7,600
(Depreciation Charged for 2018)
2. Related to the above Question 17, if Bryant Corp. sells the equipment late in December 2018, for $70,000, what is the gain or loss on the sale?
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