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Question :
Equipment acquired on January 6 at a cost of $434,700, has an estimated useful life of 9 years and an estimated residual value of $56,700.
a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?
b. What was the book value of the equipment on January 1 of Year 4?
c. Assuming that the equipment was sold on January 3 of Year 4 for $293,300, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
d. Assuming that the equipment had been sold on January 3 of Year 4 for $314,900 instead of $293,300, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
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