Entries for sale of fixed asset. Equipment acquired on January 8 at a cost of $212,000 has an estimated useful life of 15 years,has an estimated residual value of $14,000, and is depreciated by the straight-line method. a.What was the book value of the equipment at December 31 the end of the fifth year? b.Assuming that the equipment was sold on April 1 of the sixth year for $105,800, journalize the entries to record (1) depreciation for the three months until the sale date, and (2) the sale of the equipment.

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 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...
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Entries for sale of fixed asset.

Equipment acquired on January 8 at a cost of $212,000 has an estimated

useful life of 15 years,has an estimated residual value of $14,000, and is

depreciated by the straight-line method.

a.What was the book value of the equipment at December 31 the end of

the fifth year?

b.Assuming that the equipment was sold on April 1 of the sixth year for

$105,800, journalize the entries to record (1) depreciation for the three

months until the sale date, and (2) the sale of the equipment.

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