Master Company purchased equipment on January 2, 20x1 for $204,000 and estimated an $14,000 salvage...
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Master Company purchased equipment on January 2, 20x1 for $204,000 and estimated an $14,000 salvage value at the end of the equipment's 10 -year useful life. On December 31,207, there was $133,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On June 30,208, the equipment was sold for $55,500. Instructions: 1. Compute annual straight-line depreciation. 2. Compute the accumulated depreciation at disposal date (June 30,208 ). 3. Compute the book value of the equipment at disposal date (June 30,208 ). 4. Prepare the appropriate journal entries to record the disposition on the equipment
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