Concept explainers
(a)
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 salvage value is shown as below:
To record: the
(b)
To record: the journal entry for the depreciation expense for the equipment sold on June 30, 2017
(c)
To record: the journal entry for the sale of Equipment on December 31.
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Financial Accounting: Tools for Business Decision Making, 8th Edition
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