Equipment acquired on January 8 at a cost of 160,520$ has an estimated useful life of 16 years has an estimated residual value of $9000 and is depreciated by the straight line method. A) what was the book value of the equipment and December 31 the end of the fourth year? B) Assume that the equipment was sold on April 1 and the fifth year for 115,232$. B.1) generalize the entry to record depreciation for three months into the sell date in a man box does not require an entry leave a blank. Round your answer is the nearest whole dollar if required. B.2) Generalize the entry to record the sell of the equipment. If an amount box does not require an entry leave a blank do not round the intermediate calculations.
Equipment acquired on January 8 at a cost of 160,520$ has an estimated useful life of 16 years has an estimated residual value of $9000 and is depreciated by the straight line method. A) what was the book value of the equipment and December 31 the end of the fourth year? B) Assume that the equipment was sold on April 1 and the fifth year for 115,232$. B.1) generalize the entry to record depreciation for three months into the sell date in a man box does not require an entry leave a blank. Round your answer is the nearest whole dollar if required. B.2) Generalize the entry to record the sell of the equipment. If an amount box does not require an entry leave a blank do not round the intermediate calculations.
Chapter1: Financial Statements And Business Decisions
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Equipment acquired on January 8 at a cost of 160,520$ has an estimated useful life of 16 years has an estimated residual value of $9000 and is depreciated by the straight line method .
A) what was the book value of the equipment and December 31 the end of the fourth year?
B) Assume that the equipment was sold on April 1 and the fifth year for 115,232$.
B.1) generalize the entry to record depreciation for three months into the sell date in a man box does not require an entry leave a blank. Round your answer is the nearest whole dollar if required.
B.2) Generalize the entry to record the sell of the equipment. If an amount box does not require an entry leave a blank do not round the intermediate calculations.
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