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Equipment was acquired at the beginning of the year at a cost of $324,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of eight years and an estimated residual value of $43,000.
(a) What was the depreciation for the first year?
(b) Assuming the equipment was sold at the end of the second year for $200,000; determine the gain or loss on the sale of the equipment.
(c) Journalize the entry to record the sale.
Go to the U.S. Securities and Exchange Commission's Web site at http://www.sec.gov and the Financial Accounting Standards Board'sWeb site athttp://www.fasb.org.
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