Equipment Acquired on January 2, 2011 at a Cost of $273,500

question 124

Essay

Equipment acquired on January 2, 2011 at a cost of $273,500 has an estimated useful life of eight years and an estimated residual value of $35,500.
Required:
(1)What was the amual amount of depreciation for the years 2011,2012 , and 2013 , assuming the straight-line method of depreciation is used?

(2)What was the book value of the equipment on January 1,2014 ?
(3)Assuming that the equipment was sold on J anuary 2,2014 , for $\$ 170,500$ , joumalize the entry to rec ord the sale.
(4)Assuming that the equipment had been sold on J amary 2,2014 , for $\$ 189,000$ inste ad of $\$ 168,500$ , journalize the entry to record the sale.

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Definitions:

Temperature Range

The variation between the minimum and maximum temperatures over a period of time or in a specific environment.

Precipitation

Any form of water - liquid or solid - that falls from clouds and reaches the ground, including rain, snow, sleet, and hail.

Savanna

A grassland ecosystem characterized by the presence of scattered trees, maintaining an open canopy, found in tropical and subtropical regions.

Earth's Biomes

Large ecological areas on the planet's surface, defined by distinctive climate, soil, and vegetation types, such as deserts, forests, and tundra.