Equipment was acquired at the beginning of the year at a cost of $76,560. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,560. a. What was the depreciation expense for the first year? b. Assuming the equipment was sold at the end of the second year for $57,800, determine the gain or loss on sale of the equipment. c. Journalize the entry to record the sale. If an ámount box does not reguire an entry, leave it blank or enter "0".

Equipment was acquired at the beginning of the year at a cost of $76,560. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,560. a. What was the depreciation expense for the first year? b. Assuming the equipment was sold at the end of the second year for $57,800, determine the gain or loss on sale of the equipment. c. Journalize the entry to record the sale. If an ámount box does not reguire an entry, leave it blank or enter "0".

Name: Equipment was acquired at the beginning of the year at a cost of $76,
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Equipment was acquired at the beginning of the year at a cost of $76,560. The equipment was depreciated using the straight-line method based upon an estimated usefullife of 6 years and an estimated residual value of $7,560.a. What was the depreciati

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A truck acquired at a cost of $202,800 has an estimated residual value of $18,000, has an estimated useful life of 440,000 miles, and was driven 113,000 miles during the year. Determine the following. If required, round your answer for the depreciation rate to 2 decimal places. a. The depreciable cost $ b. The depreciation rate $ per mile c. The units-of-activity depreciation for the year $
Computer equipment was acquired at the beginning of the year at a cost of $62,544 that has an estimated residual value of $3,039 and an estimated useful life of 5 years. Determine the second-year depreciation using the straight-line method.
Equipment was acquired at the beginning of the year at a cost of $625,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $46,635. a. What was the depreciation for the first year? Round your answer to the nearest cent.$ b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $105,608. Round your answer to the nearest cent and enter as a positive amount.$ Loss c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent
Equipment was acquired at the beginning of the year at a cost of $77,580. The equipment was depreciated using the straight-line method based on an estimated useful life of six years and an estimated residual value of $7,620. a. What was the depreciation expense for the first year? b. Assuming the equipment was sold at the end of the second year for $58,600, determine the gain or loss on sale of the equipment. c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Debit credit
A bulding acquired at the beginring of the year at a cost of $2,200,000 has an estimated residual value of s400,000 and an estimated useful te of 20 years. Determine the following (a) The depreciable cost (b) The straight-line rate (e) The annual straight-line deprecation
answer correct step by step with all work
An asset was purchased for $143,000 on January 1, Year 1 and originally estimated to have a useful life of 9 years with a residual value of $11,500. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $1,600. Calculate the third-year depreciation expense using the revised amounts and straight-line method. a.$27,044.44 b.$28,544.44 c.$28,044.44 d.$29,044.44
A plant asset was purchased on January 1 for $59000 with an estimated salvage value of $9000 at the end of its useful life. The current year's Depreciation Expense is $5000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $30000. The remaining useful life of the plant asset is O 10.0 years. O 11.8 years. ○ 4.0 years. O 6.0 years.
2.
Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $537,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $45,805. a. What was the depreciation for the first year? Round your answer to the nearest cent. b. Using the rounded amount from Part a in your computation, determine the gain or loss on the sale of the equipment, assuming it was sold at the end of year eight for $94,863. Round your answer to the nearest cent. Enter your answer as a positive amount. c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
Windsor Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining- balance method. Year 1 2 3 4 5 Total Straight-Line $12,420 12,420 12,420 12,420 12,420 $62,100 Sum-of-the- Years'-Digits Balance $20,700 16,560 12,420 8,280 4,140 Double-Declining- $62,100 $27,600 16,560 9,936 5,962 2,042 $62,100 What is the cost of the asset being depreciated? What amount, if any, was used in the depreciation calculations for the salvage value for this asset?
Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $612,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $49,470. a. What was the depreciation for the first year? Round your answer to the nearest cent. $ b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $106,489. Round your answer to the nearest cent and enter as a positive amount. $Loss c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Cash Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipment