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Question - Pharoah Company owns equipment that cost $63,800 when purchased on January 1, 2016. It has been depreciated using the straight-line method based on an estimated salvage value of $5,600 and an estimated useful life of 5 years.
Prepare Pharoah Company's journal entries to record the sale of the equipment in these four independent situations.
(a) Sold for $29,920 on January 1, 2019.
(b) Sold for $29,920 on May 1, 2019.
(c) Sold for $10,400 on January 1, 2019.
(d) Sold for $10,400 on October 1, 2019.
Prepare the journal entries by Brainard Industries, Inc., necessitated by the restructuring of the debt at
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Johnsons Construction is considering an investment in equipment costing $660,000. The equipment will be depreciated on the straight-line basis over an 8 year period with an estimated residual value of $120,000.
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