shown below are the t accounts relating to equipment that was purchased for cash by...
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Accounting
shown below are the t accounts relating to equipment that was purchased for cash by a company on the first day of the current year. the t accounts show the balance in the accounts on January 1 along with the effects of transactions recorded on december 31 of the current year. the equipment was depreciated on a straight-line basis with an estimated useful life of 10 years and a residual value of $128. part of the equipment was sold on the last day of the current year for cash proceeds while the remaining equipment that was not sold became impaired.
[a] purchase of equipment on january 1. what was the cash paid?
[b] depreciation recorded on december 31. what was the depreciation expense?
[c] sale of part of the equipment on december 31. what was the gain on disposal?
[d] partial impairment loss on the remaining equipment on december 31. what was the impairment loss?
cash
jan 1 [a]
dec 31 590
equipment
jan 1 1828
dec 31 580
accumulated depreciation - equipment
dec 31 128
dec 31 111
dec 31 54
depreciation expense
dec 31 [b]
gain on disposal
dec 31 [c]
impairment on loss
dec 31 [d]
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