FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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New lithographic equipment, acquired at a cost of $800,000 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount of
On March 4 of Year 5, the equipment was sold for $135,000.
Instructions
1. Determine the annual depreciation expense for each of the estimated five years of use, the
Year Depreciation Accumulated Book Value,
Expense Depreciation, End of Year
End of Year
2.
3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $88,750 instead of $135,000.
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