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Equipment acquired on January 8 at a cost of $212,000 has an estimated useful life of...

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Accounting

Equipment acquired on January 8 at a cost of $212,000 has anestimated useful life of 15 years, has an estimated residual valueof $14,000, and is depreciated by the straight-line method.

a. What was the book value of the equipment atDecember 31 the end of the fifth year?

Assume that the equipment was sold on April 1 of the sixth yearfor $105,800.

1. Journalize the entry to record depreciationfor the three months until the sale date. If an amount box does notrequire an entry, leave it blank.

Depreciation expense-equipment

Accumulated depreciation-equipment

2. Journalize the entry to record the sale ofthe equipment. If an amount box does not require an entry, leave itblank.

Cash

Accumulated Depreciation-equipment

Loss on Sale of Equipment

Equipment

Answer & Explanation Solved by verified expert
4.1 Ratings (569 Votes)
Working A Cost 21200000 B Residual Value 1400000 CA B Depreciable base 19800000 D Life in years 15 ECD Annual SLM depreciation    See Answer
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