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Equipment was acquired at the beginning of the year at a cost of $800,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 10 years and an estimated residual value of $60,000. Question Content Area a.  What was the depreciation for the first year? b.  Assuming the equipment was sold at the end of the second year for $650,000, determine the gain or loss on the sale of the equipment.        Question Content Area c.  Journalize the entry on December 31 to record the sale. If an amount box does not require an entry, leave it blank. Date Account Debit Credit December 31

Equipment was acquired at the beginning of the year at a cost of $800,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 10 years and an estimated residual value of $60,000. Question Content Area a.  What was the depreciation for the first year? b.  Assuming the equipment was sold at the end of the second year for $650,000, determine the gain or loss on the sale of the equipment.        Question Content Area c.  Journalize the entry on December 31 to record the sale. If an amount box does not require an entry, leave it blank. Date Account Debit Credit December 31

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...
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Equipment was acquired at the beginning of the year at a cost of $800,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 10 years and an estimated residual value of $60,000.

Question Content Area

a.  What was the depreciation for the first year?

b.  Assuming the equipment was sold at the end of the second year for $650,000, determine the gain or loss on the sale of the equipment.
 

 
 
 

Question Content Area

c.  Journalize the entry on December 31 to record the sale. If an amount box does not require an entry, leave it blank.

Date Account Debit Credit
December 31
 
    
 
 
    
 
 
    
 
 
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