Sale of Equipment Equipment was acquired at the beginning of the year at a cost of...

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Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $36,250. The equipment was depreciated usi

business accounting

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Answer 1

Answer #1

A) Depreciation for first year

= 36,250*20%

= 7250

B)

Depreciation for second year = (36,250-7250)*20% = 5800

Book value at the end of second year = 36,250 - (7250+5800) = 23,200

Loss = 23,200 - 8,380

= 14,820

Cash	8380
Accumulated Depreciation	13050
Loss on sale	14820
Equipment		36,250

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Answer 2

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