Chapter 9, Problem 9.23E

To determine

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the residual value is shown as below:

$\text{Depreciation = }\frac{\left(\text{Cost of the asset}-\text{Residual value}\right)}{\text{Estimated useful life of the asset}}$

To record: the journal entry for the depreciation expense for 2016.

To determine

To record: the journal entry for the sale of the fixtures on May 31, 2016.