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Problem - Equipment was acquired at the beginning of the year at a cost of $79,920. The equipment was depreciated using the straight-line method based on an estimated useful life of six years and an estimated residual value of $7,920.
a. What was the depreciation expense for the ?rst year?
b. Assuming the equipment was sold at the end of the second year for $60,400, determine the gain or loss on sale of the equipment.
c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
Dividends of $119,000 were declared in each of these two years. What is the equity method balance of Domingo's Investment in Martes, Inc., at December 31, 2015?
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