Equipment acquired on January 6 at a cost of $198,700, has an estimated useful life of 9 years and an estimated residual value of $25,900.a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?YearDepreciation ExpenseYear 1Year 22$Year 3b. What was the book value of the equipment on January 1 of Year 4?$4c. Assuming that the equipment was sold on January 3 of Year 4 for $134,000, journalize the entry to record the sale. If an amount box does not require an entry, leaveit blank.d. Assuming that the equipment had been sold on January 3 of Year 4 for $143,900 instead of $134,000, journalize the entry to record the sale. If an amount box doesnot require an entry, leave it blank.000

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Description: Equipment acquired on January 6 at a cost of $198,700, has an estimated useful life of 9 years and an estimated residual value of $25,900.a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?

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Equipment acquired on January 6 at a cost of $198,700, has an estimated useful life of 9 years and an estimated residual value of $25,900. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Year Depreciation Expense Year 1 Year 2 $ Year 3 $ b. What was the book value of the equipment on January 1 of Year 4? c. Assuming that the equipment was sold on January 3 of Year 4 for $134,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Equipment acquired on January 6 at a cost of $198,700, has an estimated useful life of 9 years and an estimated residual value of $25,900. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Year Depreciation Expense Year 1 Year 2 $ Year 3 $ b. What was the book value of the equipment on January 1 of Year 4? c. Assuming that the equipment was sold on January 3 of Year 4 for $134,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

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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