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 for $532,597, determine the gain or loss on the sale of the equipment. |
C. | Journalize the entry on Dec. 31 to record the sale. Refer to the Chart of Accounts for exact wording of account titles. |
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