Chapter 10, Problem E10.23E

To determine

Depreciation:

A reduction in value of assets over the years due to wear and tear is called deprecation.

Straight-Line method:

Depreciation under straight-line method is calculated by dividing the cost of assets (less Salvage value) by the estimated life of the asset.

Gain or Loss on Sale of Asset:

It is a financial advantage procured over the sale of an asset. The difference between the carrying value or book value of an asset and the amount of cash received for the sale of the asset is called gain or loss on sale of asset. If the amount of cash received is more than the carrying value of the asset, it is a gain on sale of asset and if the amount of cash received is less than the carrying value of the asset, it is a loss on sale of asset.

To determine:

Journalizing the depreciation expense for 2018 and sale of the fixtures on May 31, 2018