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Can I have help solving this problem I keep getting it wrong.

Can I have help solving this problem I keep getting it wrong.

FINANCIAL ACCOUNTING
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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Depreciation by Two Methods; Sale of Fixed Asset New tire retreading equipment, acquired at a cost of $656,250 on September 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $56,400. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, on September 6, the equipment was sold for $96,100. Required: 1. Determine the annual depreciation expense for each of the estimated four years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods: a. Straight-line method Depreciation Accumulated Depreciation, Book Value, Year Expense End of Year End of Year 1 $ 119,9' v $ $ 2 $ 119,9' V $ X 3 $ 119,9' V $ 4 $ 119,9' v $4 $ 5 $ 119,9' V b. Double-declining-balance method Depreciation Accumulated Depreciation, Book Value, Year Expense End of Year End of Year 1 $4 $4 $ 2 $ $ $ X 3 $ 4 $4 $ $ 5 $4 $ $ X X 2. Journalize the entry to record the sale, assuming double-declining-balance method is used. If an amount box does not require an entry, leave it blank. Cash v Accumulated Depreciation-Equipment Loss on Sale of Equipment x Gain on Sale of Equipment 3. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $82,500 instead of $96,100. If an amount box does not require an entry, leave it blank. Cash v Depreciation Expense-Equipment x Gain on Sale of Equipment x
Transcribed Image Text:Depreciation by Two Methods; Sale of Fixed Asset New tire retreading equipment, acquired at a cost of $656,250 on September 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $56,400. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, on September 6, the equipment was sold for $96,100. Required: 1. Determine the annual depreciation expense for each of the estimated four years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods: a. Straight-line method Depreciation Accumulated Depreciation, Book Value, Year Expense End of Year End of Year 1 $ 119,9' v $ $ 2 $ 119,9' V $ X 3 $ 119,9' V $ 4 $ 119,9' v $4 $ 5 $ 119,9' V b. Double-declining-balance method Depreciation Accumulated Depreciation, Book Value, Year Expense End of Year End of Year 1 $4 $4 $ 2 $ $ $ X 3 $ 4 $4 $ $ 5 $4 $ $ X X 2. Journalize the entry to record the sale, assuming double-declining-balance method is used. If an amount box does not require an entry, leave it blank. Cash v Accumulated Depreciation-Equipment Loss on Sale of Equipment x Gain on Sale of Equipment 3. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $82,500 instead of $96,100. If an amount box does not require an entry, leave it blank. Cash v Depreciation Expense-Equipment x Gain on Sale of Equipment x
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Depreciation is the written down in the value of the assets.

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