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Sale of Asset Equipment acquired on January 9, 20Y3, at a cost of $50 residual value of $80,480, and is depreciated by the strai

Sale of Asset Equipment acquired on January 9, 20Y3, at a cost of $50 residual value of $80,480, and is depreciated by the strai

Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter2: Asset And Liability Valuation And Income Recognition
Section: Chapter Questions
Problem 14PC
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= Sale of Asset Equipment acquired on January 9, 20Y3, at a cost of $503,000, has an estimated useful life of 17 years, an estimated residual value of $80,480, and is depreciated by the straight-line method. a. What was the book value of the equipment at the end of the fifth year, December 31, 20Y7? Round your interim calculations and final answer to the nearest dollar. Enter account decreases, cash outflows, and the income statement effects that decrease net income as negative amounts. However, for contra asset accounts, enter account increases as a negative value. Round annual depreciation to the nearest dollar and use this amount in your follow-on calculations. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. 1. Assuming that the equipment was sold on July 1, 2018, for $176,050, illustrate the effects on the accounts and financial statement of depreciation for the six months until the sale date.
Transcribed Image Text:= Sale of Asset Equipment acquired on January 9, 20Y3, at a cost of $503,000, has an estimated useful life of 17 years, an estimated residual value of $80,480, and is depreciated by the straight-line method. a. What was the book value of the equipment at the end of the fifth year, December 31, 20Y7? Round your interim calculations and final answer to the nearest dollar. Enter account decreases, cash outflows, and the income statement effects that decrease net income as negative amounts. However, for contra asset accounts, enter account increases as a negative value. Round annual depreciation to the nearest dollar and use this amount in your follow-on calculations. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. 1. Assuming that the equipment was sold on July 1, 2018, for $176,050, illustrate the effects on the accounts and financial statement of depreciation for the six months until the sale date.
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