Equipment was acquired at the beginning or the year at $75,000. The equipment was depreciated using the straight-line mnethod based upon an estimated userul life or 6 years and ar estimated residual value of $7,500. a. What was the depreciation expense for the first year? 11,250 V b. Assuming the equipment was sold at the end of the second year for $59,000, determine the gain or loss on sale of the equipment. Gain Feedback V Check My Work Partially correct c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash 7,500 X Accumulated Depreciation 67,500 11,250 x Equipment 75,000 V Gain on Sale of Equipment

Equipment was acquired at the beginning or the year at $75,000. The equipment was depreciated using the straight-line mnethod based upon an estimated userul life or 6 years and ar estimated residual value of $7,500. a. What was the depreciation expense for the first year? 11,250 V b. Assuming the equipment was sold at the end of the second year for $59,000, determine the gain or loss on sale of the equipment. Gain Feedback V Check My Work Partially correct c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash 7,500 X Accumulated Depreciation 67,500 11,250 x Equipment 75,000 V Gain on Sale of Equipment

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Description: Equipment was acquired at the beginning of the year at a cost of $75,000. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and anestimated residual value of $7,500.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

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