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?$160000 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 Cash 650000 Assumulated Depreciation-Equipment Equipment 800000 Gain on Sale of Equipment
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?$160000 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 Cash 650000 Assumulated Depreciation-Equipment Equipment 800000 Gain on Sale of Equipment
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?$160000 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 Cash 650000 Assumulated Depreciation-Equipment Equipment 800000 Gain on Sale of Equipment
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? $160000
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
Cash
650000
Assumulated Depreciation-Equipment
Equipment
800000
Gain on Sale of Equipment
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
