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Equipment was acquired at the beginning of the year at a cost of $35,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $680. a. What was the depreciation for the first year? $4 3,432 b. Assuming the equipment was sold at the end of year 2 for $8,620, determine the gain or loss on the sale of the equipment. Gain c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash v 8,620 Accumulated Depreciation-Equipment Loss on Sale of Equipment v Equipment 35,000

Equipment was acquired at the beginning of the year at a cost of $35,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $680. a. What was the depreciation for the first year? $4 3,432 b. Assuming the equipment was sold at the end of year 2 for $8,620, determine the gain or loss on the sale of the equipment. Gain c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash v 8,620 Accumulated Depreciation-Equipment Loss on Sale of Equipment v Equipment 35,000

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 1RE: Susquehanna Company purchased an asset at the beginning of the current year for 250,000. The...
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Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $35,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $680. a. What was the depreciation for the first year? 3,432 b. Assuming the equipment was sold at the end of year 2 for $8,620, determine the gain or loss on the sale of the equipment. Gain c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash 8,620 Accumulated Depreciation-Equipment v Loss on Sale of Equipment Equipment v 35,000
Transcribed Image Text:Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $35,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $680. a. What was the depreciation for the first year? 3,432 b. Assuming the equipment was sold at the end of year 2 for $8,620, determine the gain or loss on the sale of the equipment. Gain c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash 8,620 Accumulated Depreciation-Equipment v Loss on Sale of Equipment Equipment v 35,000
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