a. Rate of double declining deprDeprecia rate = 10 years = 20%
Depreciation for 1st year = $32500*20% = $6,500
b. Depreciation for year 2 = (32500-6500)*20% = $5200
Net value = $32500 - 6500 - 5200 = $20,800
Loss on sale of equipment = $20800 - $7510 = $13,290
c.
Account Titles | Debit | Credit |
Cash | $7,510 | |
Accumulated Depreciation (6500+5200=) | $11,700 | |
Loss on sale of equipment | $13,290 | |
Equipment | $32,500 |
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