Prepare the appropriate journal entries to remove the equipment from the books of Lui Company on March 31, 2016.
Prepare the appropriate journal entries to remove the equipment from the books of Lui Company on March 31, 2016.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Disposal of Capital Assets Practice Exercises
(a) Lui Company purchased equipment in 2009 for $80,000 and estimated an $8,000 residual value at
the end of the equipment's 10-year useful life. At December 31, 2015, there was $50,400 in the
Accumulated Amortization account for this equipment using the straight-line method of amortization. On
March 31, 2016, the equipment was sold for $21,000.
Prepare the appropriate journal entries to remove the equipment from the books of Lui
Company on March 31, 2016.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9698a415-64c0-4c6a-9a26-de4e8992eb1a%2Fb1693214-3519-4a7d-befd-040b140ca19d%2F094bqn9_processed.png&w=3840&q=75)
Transcribed Image Text:Disposal of Capital Assets Practice Exercises
(a) Lui Company purchased equipment in 2009 for $80,000 and estimated an $8,000 residual value at
the end of the equipment's 10-year useful life. At December 31, 2015, there was $50,400 in the
Accumulated Amortization account for this equipment using the straight-line method of amortization. On
March 31, 2016, the equipment was sold for $21,000.
Prepare the appropriate journal entries to remove the equipment from the books of Lui
Company on March 31, 2016.
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