Faster Company Purchased Equipment in 2007 for $104,000 and Estimated

question 197

Essay

Faster Company purchased equipment in 2007 for $104,000 and estimated an $8,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2013, there was $67,200 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2014, the equipment was sold for $21,000.
Prepare the appropriate journal entries to remove the equipment from the books of Faster Company on March 31, 2014.
(b) Lewis Company sold equipment for $11,000. The equipment originally cost $25,000 in 2011 and $6,000 was spent on a major overhaul in 2014 (charged to the Equipment account). Accumulated Depreciation on the equipment to the date of disposal was $20,000.
Prepare the appropriate journal entry to record the disposition of the equipment.
(c) Selby Company sold equipment that had a book value of $13,500 for $15,000. The equipment originally cost $45,000 and it is estimated that it would cost $57,000 to replace the equipment.
Prepare the appropriate journal entry to record the disposition of the equipment.

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Definitions:

Origins

The point or place where something begins, arises, or is derived from; the background or source.

Theory of Planned Behavior

A theory suggesting that an individual's behavior is directly influenced by their intention to perform the behavior, which is shaped by attitudes, subjective norms, and perceived control.

Main Components

Essential parts or elements that make up a system, structure, or principle, foundational to its function or identity.

Informational Social Influence

The process of aligning one's thoughts or behaviors with those of a group because of a desire to be correct or to understand the correct way to act in a given situation.