Equipment acquired on January 3, 2007, at a cost of $265,500, has an estimated useful life of eight years and an estimated residual value of $31,500. a. What was the annual amount of depreciation for the years 2007, 2008, and 2009, using the straight-line method of depreciation? b. What was the book value of the equipment on January 1, 2010? c. Assuming that the equipment was sold on January 4, 2010, for $168,500, journalize the entry to record the sale. d. Assuming that the equipment had been sold on January 4, 2010, for $180,000 instead of $168,500, journalize the entry to record the sale.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Equipment acquired on January 3, 2007, at a cost of $265,500, has an estimated useful

life of eight years and an estimated residual value of $31,500.

a. What was the annual amount of depreciation for the years 2007, 2008, and 2009,

using the straight-line method of depreciation?

b. What was the book value of the equipment on January 1, 2010?

c. Assuming that the equipment was sold on January 4, 2010, for $168,500, journalize

the entry to record the sale.

d. Assuming that the equipment had been sold on January 4, 2010, for $180,000

instead of $168,500, journalize the entry to record the sale.

 

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