Question

Equipment acquired on January 8 at a cost of $122,240 has an estimated useful life of 14 years, has an estimated residual value of $9,400, and is depreciated by the straight-line method. Question Content Area a. What was the book value of the equipment at December 31 the end of the fourth year?Assuming that the equipment was sold on April 1 of the fifth year for $82,445. Journalize the entry to record depreciation for the 3 months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if required.Journalize the entry to record the sale of the equipment. If an amount box does not require

Answer 1

The journal entry would be:

Debit: Cash $82,445

Debit: Acucumulated Depreciation Equipment $32,400

Debit: Loss on sale of Equipment $9,395

Credit: Equipment $122,240