Disposal of fixed asset Equipment acquired on January 6 at a cost of 187 700 has an estimated useful life of 8 years and an

Question

Disposal of fixed asset Equipment acquired on January 6 at a cost of 187 700 has an estimated useful life of 8 years and an estimated residual value of 24 500 a What was the annual amount of depreciation for Years 1 3 using the straight line method of depreciation Year Depreciation Expense Year 1 20 400 V Year 2 20 400 Year 3 20 400 b What was the book value of the equipment on January 1 of Year 4 126 500 Feedback Check My Work c Assuming that the equipment was sold on January 3 of Year 4 for 120 200 Journalize the entry to record the sale If an amount box does not require an entry leave it blank January 3 Cash Accumulated Depreciation Equipment Loss on Sale of Equipment Equipment Feedback Check My Work 120 200 61 200 6 300 187 700 d Assuming that the equipment had been sold on January 3 of Year 4 for 129 000 instead of 120 200 journalize the entry to record the sale If an amount box does not require an entry leave it

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