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Equipment was acquired at the beginning of the year at a cost of $800,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 10 years and an estimated residual value of $60,000. Question Content Area a.  What was the depreciation for the first year? b.  Assuming the equipment was sold at the end of the second year for $650,000, determine the gain or loss on the sale of the equipment.        Question Content Area c.  Journalize the entry on December 31 to record the sale. If an amount box does not require an entry, leave it blank. Date Account Debit Credit December 31

Equipment was acquired at the beginning of the year at a cost of $800,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 10 years and an estimated residual value of $60,000. Question Content Area a.  What was the depreciation for the first year? b.  Assuming the equipment was sold at the end of the second year for $650,000, determine the gain or loss on the sale of the equipment.        Question Content Area c.  Journalize the entry on December 31 to record the sale. If an amount box does not require an entry, leave it blank. Date Account Debit Credit December 31

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.7AMCP
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Equipment was acquired at the beginning of the year at a cost of $800,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 10 years and an estimated residual value of $60,000.

Question Content Area

a.  What was the depreciation for the first year?

b.  Assuming the equipment was sold at the end of the second year for $650,000, determine the gain or loss on the sale of the equipment.
 

 
 
 

Question Content Area

c.  Journalize the entry on December 31 to record the sale. If an amount box does not require an entry, leave it blank.

Date Account Debit Credit
December 31
 
    
 
 
    
 
 
    
 
 
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