Reference no: EM131128100
1. Equipment acquired on January 3, 2007, at a cost of $265,500, has an estimated useful life of eight years and an estimated residual value of $31,500.
(a) What was the annual amount of depreciation for the years 2007, 2008, and 2009, using the straight-line method of depreciation?
(b) What was the book value of the equipment on January 1, 2010?
(c) Assuming that the equipment was sold on January 4, 2010, for $168,500, journalize the entry to record the sale.
(d) Assuming that the equipment had been sold on January 4, 2010, for $180,000 instead of $168,500, journalize the entry to record the sale.
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: What was the annual amount of depreciation for the years 2007, 2008, and 2009, using the straight-line method of depreciation?
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