Reference no: EM132084118

Question -

1. (a) Lui Company purchased equipment in 1995 for $80,000 and estimated an $8,000 residual value at the end of the equipment's 10-year useful life. At December 31, 2001, there was $50,400 in the Accumulated Amortization account for this equipment using the straight-line method of amortization. On March 31, 2002, the equipment was sold for $21,000. Prepare the appropriate journal entries to remove the equipment from the books of Lui Company on March 31, 2002.

2. (b) Gagne Company sold a delivery truck for $11,000. The delivery truck originally cost $25,000 in 1998 and $6,000 was spent on a major overhaul in 2001 (charged to Delivery Truck account). Accumulated Amortization on the delivery truck to the date of disposal was $20,000. Prepare the appropriate journal entry to record the disposition of the delivery truck.

3. (c) Crenshaw Company sold office equipment that had a net book value of $4,500 for $6,000. The office equipment originally cost $15,000 and it is estimated that it would cost $19,000 to replace the office equipment. Prepare the appropriate journal entry to record the disposition of the office equipment.