Equipment acquired on January 8, 2011, at a cost of $420,000, has an estimated useful life of 15 years, has an estimated residual value of $30,000, and is depreciated by the straight-line method.a. What was the book value of the equipment at December 31, 2014, the end of the year?b. Assuming that the equipment was sold on October 1, 2015, for $275,000, journalize the entries to record (1) Depreciation for the nine months until the sale date, (2) The sale of the equipment.View Solution: Equipment acquired on January 8 2011 at a cost of

Financial Accounting: The Impact on Decision Makers
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ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
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Problem 8.6E
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Equipment acquired on January 8, 2011, at a cost of $420,000, has an estimated useful life of 15 years, has an estimated residual value of $30,000, and is depreciated by the straight-line method.a. What was the book value of the equipment at December 31, 2014, the end of the year?b. Assuming that the equipment was sold on October 1, 2015, for $275,000, journalize the entries to record (1) Depreciation for the nine months until the sale date, (2) The sale of the equipment.View Solution:
Equipment acquired on January 8 2011 at a cost of

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