Gains and Losses on disposal Assume that, at the end of year 2 (before recording...
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Gains and Losses on disposal Assume that, at the end of year 2 (before recording the annual depreciation), Strathcona's business changed such that they required larger equipment. As such, they sell the press for proceeds of $195,000. Provide the journal entries that would be recorded for this sale. Assume the company records adjusting entries annually at year end. Calculate the gain/loss AND determine the overall impac to the income statements for the years owned using each of the methods. i. Straight line depreciation Gains and Losses on disposal Assume that, at the end of year 2 (before recording the annual depreciation), Strathcona's business changed such that they required larger equipment. As such, they sell the press for proceeds of $195,000. Provide the journal entries that would be recorded for this sale. Assume the company records adjusting entries annually at year end. Calculate the gain/loss AND determine the overall impac to the income statements for the years owned using each of the methods. i. Straight line depreciation
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