Question

Equipment was acquired at the beginning of the year at a cost of $537,500. The equipment...

Equipment was acquired at the beginning of the year at a cost of $537,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $47,975.

a. What was the depreciation for the first year? Round your answer to the nearest cent. $

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 $94,882. Round your answer to the nearest cent and enter as a positive amount. $

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.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
a
Cost 537500
Less: Residual value 47975
Depreciable cost 489525
Divide by Useful life 9
Depreciation for the first year 54391.67
b
Cost 537500
Less: Accumulated depreciation 435133.36 =54391.67*8
Book value 102366.64
Less: Sales value 94882
Loss on sale of Equipment 7484.64
c
Debit Credit
Cash 94882.00
Accumulated Depreciation 435133.36
Loss on sale of Equipment 7484.64
       Equipment 537500.00
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Sale of Equipment Equipment was acquired at the beginning of the year at a cost of...
Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $537,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $45,545. a. What was the depreciation for the first year? Round your answer to the nearest cent. $ b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it...
10/2 Sale of Equipment Equipment was acquired at the beginning of the year at a cost...
10/2 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 $48,150. a. What was the depreciation for the first year? Round your answer to the nearest cent. $ b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming...
Equipment was acquired at the beginning of the year at a cost of $79,500. The equipment...
Equipment was acquired at the beginning of the year at a cost of $79,500. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,500. a. What was the depreciation expense for the first year? $ b. Assuming the equipment was sold at the end of the second year for $59,900, determine the gain or loss on sale of the equipment. $   c. Journalize the entry to...
Equipment was acquired at the beginning of the year at a cost of $537,500. The equipment...
Equipment was acquired at the beginning of the year at a cost of $537,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $47,040. A. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. B. Assuming that the equipment was sold at the end of the second year...
Equipment was acquired at the beginning of the year at a cost of $662,500. The equipment...
Equipment was acquired at the beginning of the year at a cost of $662,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $48,430. A. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. B. Assuming that the equipment was sold at the end of the second year...
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $174,340,...
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $174,340, has an estimated useful life of 17 years, has an estimated residual value of $9,950, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? $ b. Assuming that the equipment was sold on April 1 of the fifth year for 127,727. 1. Journalize the entry to record depreciation...
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $141,540,...
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $141,540, has an estimated useful life of 16 years, has an estimated residual value of $8,900, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? $ b. Assuming that the equipment was sold on April 1 of the fifth year for 99,442. 1. Journalize the entry to record depreciation...
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $105,310,...
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $105,310, has an estimated useful life of 12 years, has an estimated residual value of $7,150, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? $ 72,590 b. Assuming that the equipment was sold on April 1 of the fifth year for 63,680. 1. Journalize the entry to record...
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $198,600,...
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $198,600, has an estimated useful life of 20 years, has an estimated residual value of $8,800, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? $ b. Assuming that the equipment was sold on April 1 of the fifth year for 152,067. 1. Journalize the entry to record depreciation...
Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $220,800, has an...
Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $220,800, has an estimated useful life of 10 years and an estimated residual value of $28,800. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Year Depreciation Expense Year 1 $ Year 2 $ Year 3 $ b. What was the book value of the equipment on January 1 of Year 4? $ c. Assuming that the equipment...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT