On January 1,2011,Crunch Company paid $100,000 for equipment with an estimated useful life of 5 years and no residual value.
Part A: Calculate the financial statement amounts using each of the depreciation methods below:

Part B:
1.On January 1,2013,Crunch Company sold the equipment for $62,000 cash.Assume straight-line depreciation was used.For each financial statement line item,write in the correct amount in the column that represents the financial statement where the information is found:
2.Show the effect if the truck had been sold for $45,000 cash.

Question

On January 1,2011,Crunch Company paid $100,000 for equipment with an estimated useful life of 5 years and no residual value.
Part A: Calculate the financial statement amounts using each of the depreciation methods below:
 
 Part B:
1.On January 1,2013,Crunch Company sold the equipment for $62,000 cash.Assume straight-line depreciation was used.For each financial statement line item,write in the correct amount in the column that represents the financial statement where the information is found:
  2.Show the effect if the truck had been sold for $45,000 cash.

Quizplus · Accepted Answer

The Answer of On January 1,2011,Crunch Company paid $100,000 for equipment with an estimated useful life of 5 years and no residual value.
Part A: Calculate the financial statement amounts using each of the depreciation methods below:
 
 Part B:
1.On January 1,2013,Crunch Company sold the equipment for $62,000 cash.Assume straight-line depreciation was used.For each financial statement line item,write in the correct amount in the column that represents the financial statement where the information is found:
  2.Show the effect if the truck had been sold for $45,000 cash.

On January 1,2011,Crunch Company Paid $100,000 for Equipment with an Estimated