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Disposal of fixed asset Equipment acquired on January 6 at a cost of $409,900 has an estimated useful life of 9 years and an estimated residual value of $53,500. a. What was the annual amount of depreciation for Years 1-3 using the straight-line method of depreciation? Year Year 1 Year 2 Year 3 b. What was the book value of the equipment on January 1 of Year 4? 291,100 ✓ Feedback Depreciation Expense 39,600 ✔ 39,600 ✓ 39.600 ✓ The cost of a fixed asset minus accumulated depreciation on the asset. Check My Work Asset cost minus residual value equals depreciable cost. Asset cost minus accumulated depreciation equals book value. The Accumulated Depreciation account is a permanent account and therefore the balance in the account grows each year of the asset's life. c. Assuming that the equipment was sold on January 3 of Year 4 for $276,500, journalize the entry to record the sale. If an amount box does not require an entry, leave blank. January 3 Cash Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipment ✓ 276,500 ✓

Disposal of fixed asset Equipment acquired on January 6 at a cost of $409,900 has an estimated useful life of 9 years and an estimated residual value of $53,500. a. What was the annual amount of depreciation for Years 1-3 using the straight-line method of depreciation? Year Year 1 Year 2 Year 3 b. What was the book value of the equipment on January 1 of Year 4? 291,100 ✓ Feedback Depreciation Expense 39,600 ✔ 39,600 ✓ 39.600 ✓ The cost of a fixed asset minus accumulated depreciation on the asset. Check My Work Asset cost minus residual value equals depreciable cost. Asset cost minus accumulated depreciation equals book value. The Accumulated Depreciation account is a permanent account and therefore the balance in the account grows each year of the asset's life. c. Assuming that the equipment was sold on January 3 of Year 4 for $276,500, journalize the entry to record the sale. If an amount box does not require an entry, leave blank. January 3 Cash Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipment ✓ 276,500 ✓

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Disposal of fixed asset Equipment acquired on January 6 at a cost of $409,900 has an estimated useful life of 9 years and an estimated residual value of $53,500. a. What was the annual amount of depreciation for Years 1-3 using the straight-line method of depreciation? Year Year 1 Year 2 Year 3 Feedback Depreciation Expense $ 39,600 39,600 b. What was the book value of the equipment on January 1 of Year 4? $ 291,100 January 3 Cash 30 600 The cost of a fixed asset minus accumulated depreciation on the asset. Check My Work Asset cost minus residual value equals depreciable cost. Asset cost minus accumulated depreciation equals book value. The Accumulated Depreciation account is a permanent account and therefore the balance in the account grows each year of the asset's life. c. Assuming that the equipment was sold on January 3 of Year 4 for $276,500, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipment 276,500 300
Transcribed Image Text:Disposal of fixed asset Equipment acquired on January 6 at a cost of $409,900 has an estimated useful life of 9 years and an estimated residual value of $53,500. a. What was the annual amount of depreciation for Years 1-3 using the straight-line method of depreciation? Year Year 1 Year 2 Year 3 Feedback Depreciation Expense $ 39,600 39,600 b. What was the book value of the equipment on January 1 of Year 4? $ 291,100 January 3 Cash 30 600 The cost of a fixed asset minus accumulated depreciation on the asset. Check My Work Asset cost minus residual value equals depreciable cost. Asset cost minus accumulated depreciation equals book value. The Accumulated Depreciation account is a permanent account and therefore the balance in the account grows each year of the asset's life. c. Assuming that the equipment was sold on January 3 of Year 4 for $276,500, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipment 276,500 300
January 3 Cash Feedback Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipment Check My Work The cost of a fixed asset minus accumulated depreciation on the asset. price, the asset was sold for a gain. If the book value is more than the sale price, the equipment was sold for a loss. Compare th January 3 Cash Feedback 276,500 K d. Assuming that the equipment had been sold on January 3 of Year 4 for $296,900 instead of $276,500, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. 0000 Accumulated Depreciation-Equipment Equipment Gain on Sale of Equipment ▼ Check My Work Compare the book value amount to the sale price. If the book value is less than the sale price, the asset was sold for a gain. If the book value is more than the sale price, the equipment was sold for a loss.
Transcribed Image Text:January 3 Cash Feedback Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipment Check My Work The cost of a fixed asset minus accumulated depreciation on the asset. price, the asset was sold for a gain. If the book value is more than the sale price, the equipment was sold for a loss. Compare th January 3 Cash Feedback 276,500 K d. Assuming that the equipment had been sold on January 3 of Year 4 for $296,900 instead of $276,500, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. 0000 Accumulated Depreciation-Equipment Equipment Gain on Sale of Equipment ▼ Check My Work Compare the book value amount to the sale price. If the book value is less than the sale price, the asset was sold for a gain. If the book value is more than the sale price, the equipment was sold for a loss.
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