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Disposal of fixed asset Equipment acquired on January 4, 2009, at a cost of $425,000, has an estimated useful life of nine years and an estimated residual value of $65,000. a. What was the annual amount of depreciation for the years 2009, 2010, and 2011, using the straight-line method of depreciation? b. What was the book value of the equipment on January 1, 2012? c. Assuming that the equipment was sold on January 9, 2012, for $290,000, journalize the entry to record the sale. d. Assuming that the equipment had been sold on January 9, 2012, for $310,000 instead of $290,000, journalize the entry to record the sale.
Set up the required T accounts below and show how this transaction would be recorded directly to those accounts
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