Blue Co. purchased equipment on September 7, 20X4 for $100,000. The equipment's estimated life is 4 years and it has an estimated salvage value of $3,000. The company uses double - declining -balance (DDB) depreciation and applies the half-year convention, which includes taking one- half year depreciation in the year of purchase and in the year of sale or disposal. Blue Co. sold the equipment on July 10, 20X6 for $30,000. What was the gain on sale?

Blue Co. purchased equipment on September 7, 20X4 for $100,000. The equipment's estimated life is 4 years and it has an estimated salvage value of $3,000. The company uses double - declining -balance (DDB) depreciation and applies the half-year convention, which includes taking one- half year depreciation in the year of purchase and in the year of sale or disposal. Blue Co. sold the equipment on July 10, 20X6 for $30,000. What was the gain on sale?

Name: Blue Co. purchased equipment on September 7, 20X4 for $100,000. The e
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Description: Blue Co. purchased equipment on September 7, 20X4 for $100,000. The equipment's estimatedlife is 4 years and it has an estimated salvage value of $3,000. The company uses double-declining- balance (DDB) depreciation and applies the half-year convent

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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