Equipment acquired on January 2, Year 1, at a cost of $525,000 has an estimated useful life of eight years and an estimated residual value of $45,000. Required: 1. What is the annual amount of depreciation for the first three years, assuming the straight-line method of depreciation is used? Depreciation Expense Year 1 %24 Year 2 $4 Year 3 %24 2. What is the book value of the equipment on January 1, Year 4? 3. Assuming that the equipment is sold on January 2, Year 4, for $326,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. 4. Assuming that the equipment is sold on January 2, Year 4, for $394,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Equipment acquired on January 2, Year 1, at a cost of $525,000 has an estimated useful life of eight years and an estimated residual value of $45,000. Required: 1. What is the annual amount of depreciation for the first three years, assuming the straight-line method of depreciation is used? Depreciation Expense Year 1 %24 Year 2 $4 Year 3 %24 2. What is the book value of the equipment on January 1, Year 4? 3. Assuming that the equipment is sold on January 2, Year 4, for $326,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. 4. Assuming that the equipment is sold on January 2, Year 4, for $394,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Name: 7. EX.09.218Equipment acquired on January 2, Year 1, at a cost of $52
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Description: 7. EX.09.218Equipment acquired on January 2, Year 1, at a cost of $525,000 has an estimated useful life of eight years and an estimated residual value of $45,000.Required:1. What is the annual amount of depreciation for the first three years, assumi

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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