Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $455,400 has an estimated useful life of 10 years and an estimated residual value of $59,400. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Year Depreciation Expense Year 1 $fill in the blank f1b9f00b5045034_1 Year 2 $fill in the blank f1b9f00b5045034_2 Year 3 $fill in the blank f1b9f00b5045034_3 b. What was the book value of the equipment on January 1 of Year 4? $fill in the blank f1b9f00b5045034_4 c. Assuming that the equipment was sold on January 3 of Year 4 for $319,800, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Jan. 3 fill in the blank ba2b40ff4fcafe9_2 fill in the blank ba2b40ff4fcafe9_3 fill in the blank ba2b40ff4fcafe9_5 fill in the blank ba2b40ff4fcafe9_6 fill in the blank ba2b40ff4fcafe9_8 fill in the blank ba2b40ff4fcafe9_9 fill in the blank ba2b40ff4fcafe9_11 fill in the blank ba2b40ff4fcafe9_12 d. Assuming that the equipment had been sold on January 3 of Year 4 for $343,300 instead of $319,800, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Jan. 3 fill in the blank 45175efad01dff1_2 fill in the blank 45175efad01dff1_3 fill in the blank 45175efad01dff1_5 fill in the blank 45175efad01dff1_6 fill in the blank 45175efad01dff1_8 fill in the blank 45175efad01dff1_9 fill in the blank 45175efad01dff1_11 fill in the blank 45175efad01dff1_12

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.6E

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Disposal of Fixed Asset

Equipment acquired on January 6 at a cost of $455,400 has an estimated useful life of 10 years and an estimated residual value of $59,400.

a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?

Year	Depreciation Expense
Year 1	$fill in the blank f1b9f00b5045034_1
Year 2	$fill in the blank f1b9f00b5045034_2
Year 3	$fill in the blank f1b9f00b5045034_3

b. What was the book value of the equipment on January 1 of Year 4?
$fill in the blank f1b9f00b5045034_4

c. Assuming that the equipment was sold on January 3 of Year 4 for $319,800, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Jan. 3	fill in the blank ba2b40ff4fcafe9_2	fill in the blank ba2b40ff4fcafe9_3
	fill in the blank ba2b40ff4fcafe9_5	fill in the blank ba2b40ff4fcafe9_6
	fill in the blank ba2b40ff4fcafe9_8	fill in the blank ba2b40ff4fcafe9_9
	fill in the blank ba2b40ff4fcafe9_11	fill in the blank ba2b40ff4fcafe9_12

d. Assuming that the equipment had been sold on January 3 of Year 4 for $343,300 instead of $319,800, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Jan. 3	fill in the blank 45175efad01dff1_2	fill in the blank 45175efad01dff1_3
	fill in the blank 45175efad01dff1_5	fill in the blank 45175efad01dff1_6
	fill in the blank 45175efad01dff1_8	fill in the blank 45175efad01dff1_9
	fill in the blank 45175efad01dff1_11	fill in the blank 45175efad01dff1_12

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