Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $38,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $740. a. What was the depreciation for the first year? 7,600 b. Assuming the equipment was sold at the end of year 2 for $9,360, determine the gain or loss on the sale of the equipment. -13,440 X Loss

FINANCIAL ACCOUNTING
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Sale of Equipment
Equipment was acquired at the beginning of the year at a cost of $38,000. The equipment was depreciated using the double-declining-balance method
based on an estimated useful life of ten years and an estimated residual value of $740.
a. What was the depreciation for the first year?
7,600
b. Assuming the equipment was sold at the end of year 2 for $9,360, determine the gain or loss on the sale of the equipment.
-13,440 X Loss
Transcribed Image Text:Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $38,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $740. a. What was the depreciation for the first year? 7,600 b. Assuming the equipment was sold at the end of year 2 for $9,360, determine the gain or loss on the sale of the equipment. -13,440 X Loss
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