Question

elook Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $662.500. The eguipment was depreciated using the straight-line method based on an estimated useful ife of 9 years and an estimated residual value of $46.335 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(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $108,413. Round your answer to the nearest cent and enter as a positive amount. C Journalize the entry to record the sale. an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

Answer 1

ADSWEY Giveo, cert of Equjamenk Vrefyl Life Equiament Residkal Value Method of Oepreciqtion $46335 sbaight line methode 4 Cal calati on of Depueciatton qb the end of a frst yey Deprecigtion (ender Skeqight lige methal) Cost -Kesidyal valye Orefyl life of 9vet 46335 662500 9 yegus Depvec gbron at end of 1st yepu Depveciqtion at the end of yeargear is $8462-78. 68462.78 b Gai)/ Loss it an ezuiphent is soll qt the end of year eight $ l0846 Under the shalghk Iine methat, the depecisti on is dllocatel to the en of exch year by the same qmornk Sb Accumylaki Depuecigtien qt the ond of gth Yequ Gain/ loss on Sgle of Eguipmegtt cost of Equiamene * Accumubbel depvecigtiog 68462-78 X S yegus $547702.20 662500 114797, 80 (108413) -: sale ot Equlpment Loss on Sale ofEquipment 6384-80

The comp4ny will inur toss of $ 6384.80 if equlement is rold for ° $lO248 at the end of th hoptpy yequ «) Iovmglee tle enby to recerd the sigle. Parlzullg-5 Debit ($) Cash Alc Accymulabel Oepecigtion Alc Loss og sale of Equtypmen E Alea To Equpment Alc ceing equipment wl and los. setognibel_ogsale_of qupmant) 108413 or 547702.20 DV. G384.80 662500 662300