Question

Equipment acquired on January 9, 20Y3, at a cost of $699,000, has an estimated useful life...

Equipment acquired on January 9, 20Y3, at a cost of $699,000, has an estimated useful life of 17 years, an estimated residual value of $153,780, and is depreciated by the straight-line method.

a. What was the book value of the equipment at the end of the fifth year, December 31, 20Y7? Round your interim calculations and final answer to the nearest dollar.
$

For decreases in accounts or outflows of cash, enter your answers as negative numbers. Round annual depreciation to the nearest dollar and use this amount in your follow-on calculations. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank.

b1. Assuming that the equipment was sold on July 1, 20Y8, for $244,650, illustrate the effects on the accounts and financial statement of depreciation for the six months until the sale date.

Statement of Cash Flows Balance Sheet Income Statement
Assets = Liabilities + Stockholders' Equity
- Accumulated depreciation - equipment + No effect = No effect + Retained earnings
July 1.
Statement of Cash Flows Income Statement
No effect Depreciation expense

b2. Assuming that the equipment was sold on July 1, 20Y8, for $244,650, illustrate the effects on the accounts and financial statement of the sale of the equipment.

Statement of Cash Flows Balance Sheet Income Statement
Assets = Liabilities + Stockholders' Equity
Cash + Equipment - Accumulated depreciation - equipment = No effect Retained earnings
July 1.
Statement of Cash Flows Income Statement
Investing Loss on disposal of fixed Assets
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Answer #1
a Book Value of Equipment $209,700
Statement of cash flows Balance Sheet Income Statement
Assets = Liabilities + Stockholder's Equity
Accumulated depreciation - equipment = No effect + Retained Earnings
Dec, 1 41940 No effect -41940
Statement of cash flows Income Statement
No effect 0 Depreciation expense 41940
b
Statement of cash flows Balance Sheet Income Statement
Assets = Liabilities + Stockholder's Equity
Cash    +Equipment - Accumulated = No effect + Retained Earnings
Mar, 1 13980 = 0 + -13980
Statement of cash flows Income Statement
Investing 244650 Loss on disposal of fixed Assets 13980
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