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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535 Exercise 18
Sale of equipment
Equipment was acquired at the beginning of the year at a cost of $600,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 16 years and an estimated residual value of $60,000.
A. What was the depreciation for the first year?
B. Assuming the equipment was sold at the end of the second year for $480,000 determine the gain or loss on the sale of the equipment.
C. Journalize the entry on Dec. 31 to record the sale.
Equipment was acquired at the beginning of the year at a cost of $600,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 16 years and an estimated residual value of $60,000.
A. What was the depreciation for the first year?
B. Assuming the equipment was sold at the end of the second year for $480,000 determine the gain or loss on the sale of the equipment.
C. Journalize the entry on Dec. 31 to record the sale.
Explanation
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Double-declining method: It helps in the...
Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
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