Equipment acquired on January 2, 2011 at a cost of $273,500 has an estimated useful life of eight years and an estimated residual value of $35,500.
Required:
(1)What was the amual amount of depreciation for the years 2011,2012 , and 2013 , assuming the straight-line method of depreciation is used?

(2)What was the book value of the equipment on January 1,2014 ?
(3)Assuming that the equipment was sold on J anuary 2,2014 , for $ \$ 170,500 $, joumalize the entry to rec ord the sale.
(4)Assuming that the equipment had been sold on J amary 2,2014 , for $ \$ 189,000 $ inste ad of $ \$ 168,500 $, journalize the entry to record the sale.

Question

Equipment acquired on January 2, 2011 at a cost of $273,500 has an estimated useful life of eight years and an estimated residual value of $35,500.
Required:
 (1)What was the amual amount of depreciation for the years 2011,2012 , and 2013 , assuming the straight-line method of depreciation is used?

(2)What was the book value of the equipment on January 1,2014 ?
(3)Assuming that the equipment was sold on J anuary 2,2014 , for $ \$ 170,500 $, joumalize the entry to rec ord the sale.
(4)Assuming that the equipment had been sold on J amary 2,2014 , for $ \$ 189,000 $ inste ad of $ \$ 168,500 $, journalize the entry to record the sale.

Quizplus · Accepted Answer

The Answer of Equipment acquired on January 2, 2011 at a cost of $273,500 has an estimated useful life of eight years and an estimated residual value of $35,500.
Required:
 (1)What was the amual amount of depreciation for the years 2011,2012 , and 2013 , assuming the straight-line method of depreciation is used?

(2)What was the book value of the equipment on January 1,2014 ?
(3)Assuming that the equipment was sold on J anuary 2,2014 , for $ \$ 170,500 $, joumalize the entry to rec ord the sale.
(4)Assuming that the equipment had been sold on J amary 2,2014 , for $ \$ 189,000 $ inste ad of $ \$ 168,500 $, journalize the entry to record the sale.

Equipment Acquired on January 2, 2011 at a Cost of $273,500