Homework Answers
Depreciation per unit = ($183,000 - $47,000) / 340,000 = $0.40 per unit
Total units produced = 49,000 + 78,000 + 39,000 = 166,000
Total Depreciation charged = 166,000 X $0.40 = $66,400
1) Gain (Loss) on sale = $97,600 - ($183,000 - $66,400) = ($19,000)
2)
| Account title and explanation | Debit | Credit |
| Cash | $97,600 | - |
| Accumulated depreciation | $66,400 | - |
| Loss on sale of asset | $19,000 | - |
| Equipment | - | $183,000 |
3) Gain (Loss) on sale = $134,600 - ($183,000 - $66,400) = $18,000
4)
| Account title and explanation | Debit | Credit |
| Cash | $134,600 | - |
| Accumulated depreciation | $66,400 | - |
| Gain on sale of asset | - | 18,000 |
| Equipment | - | $183,000 |
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