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Equipment acquired on January 8 at a cost of $168,000 has an estimated useful life of 18 years, has an estimated residual value of $15,000, and is depreciated by the straight-line method.
Question A. What was the book value of the equipment at December 31 the end of the fourth year?
Question B. Assuming that the equipment was sold on April 1 of the fifth year for $125,000, journalize the entries to record
(1) depreciation for the three months until the sale date and
(2) the sale of the equipment.
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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