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Sale of Equipment

Equipment was acquired at the beginning of the year at a cost of $600,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $48,830.

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a. What was the depreciation for the first year? Round your answer to the nearest cent. $fill in the blank 587376f7301d005_1

b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $103,436.

Round your answer to the nearest cent and enter as a positive amount. $fill in the blank 587376f7301d005_2

GainLossLoss

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c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

blank	Accounts PayableAccounts ReceivableCashDepreciation ExpenseEquipmentGain on Sale of EquipmentCash	Cash	Cash
	Accounts PayableAccounts ReceivableAccumulated Depreciation-EquipmentDepreciation ExpenseEquipmentGain on Sale of EquipmentAccumulated Depreciation-Equipment	Accumulated Depreciation-Equipment	Accumulated Depreciation-Equipment
	Accounts PayableAccounts ReceivableAccumulated Depreciation-EquipmentDepreciation ExpenseGain on Sale of EquipmentLoss on Sale of EquipmentLoss on Sale of Equipment	Loss on Sale of Equipment	Loss on Sale of Equipment
	Accounts PayableAccounts ReceivableAccumulated Depreciation-EquipmentDepreciation PayableEquipmentDepreciation ExpenseEquipment	Equipment	Equipment

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