question archive Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $37,500
Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $37,500
Subject:AccountingPrice: Bought3
Sale of Equipment
Equipment was acquired at the beginning of the year at a cost of $37,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $730.
a. What was the depreciation for the first year?
$
b. Assuming the equipment was sold at the end of year 2 for $8,670, determine the gain or loss on the sale of the equipment.
$
c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
