College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Transcribed Image Text:Sale of Equipment
Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment was depreciated using the straight-line method
based on an estimated useful life of 9 years and an estimated residual value of $48,325.
a. What was the depreciation for the first year? Round your answer to the nearest cent.
b. Using the rounded amount from Part a in your computation, determine the gain or loss on the sale of the equipment, assuming it was
sold at the end of year eight for $98,111. Round your answer to the nearest cent. Enter your answer as a positive amount.
c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest
cent.
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