Equipment acquired on January 2,Year 1,at a cost of $525,000 has an estimated useful life of eight years and an estimated residual value of $45,000.
Required:
1 What is the annual amount of depreciation for the first three years,assuming the straight-line method of depreciation is used?
2 What is the book value of the equipment on January 1,Year 4?
3 Assuming that the equipment is sold on January 2,Year 4,for $326,000,journalize the entry to record the sale.
4 Assuming that the equipment is sold on January 2,Year 4,for $394,000 instead of
$168,500,journalize the entry to record the sale.

Question

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The Answer of Equipment acquired on January 2,Year 1,at a cost of $525,000 has an estimated useful life of eight years and an estimated residual value of $45,000.
Required:
1 What is the annual amount of depreciation for the first three years,assuming the straight-line method of depreciation is used?
2 What is the book value of the equipment on January 1,Year 4?
3 Assuming that the equipment is sold on January 2,Year 4,for $326,000,journalize the entry to record the sale.
4 Assuming that the equipment is sold on January 2,Year 4,for $394,000 instead of
$168,500,journalize the entry to record the sale.

Equipment Acquired on January 2,Year 1,at a Cost of $525,000