Riley Corp. acquired equipment on January 2, Year 1, at a cost of $570,000 with an estimated useful life of twelve years and an estimated residual value of $49,500. Please be sure to label each section of your answer below. (a) What is the annual amount of depreciation for each of the first three years, assuming the straight-line method of depreciation is used? Please show your work. Year 1: Year 2: Year 3: (b) What is the net book value of the equipment on January 1, Year 4? Please show your work. (c) Assuming that the equipment is sold on January 2, Year 4, for $426,500, journalize the entry to record the sale. Descriptions are not required but please include the date. Date Account DR CR O (d) Assuming that the equipment is sold on January 2, Year 4, for $495,000 (instead of $426,500), journalize the entry to record the sale. Descriptions are not required but please include the date. DR CR Date Account 0 6 D

Riley Corp. acquired equipment on January 2, Year 1, at a cost of $570,000 with an estimated useful life of twelve years and an estimated residual value of $49,500. Please be sure to label each section of your answer below. (a) What is the annual amount of depreciation for each of the first three years, assuming the straight-line method of depreciation is used? Please show your work. Year 1: Year 2: Year 3: (b) What is the net book value of the equipment on January 1, Year 4? Please show your work. (c) Assuming that the equipment is sold on January 2, Year 4, for $426,500, journalize the entry to record the sale. Descriptions are not required but please include the date. Date Account DR CR O (d) Assuming that the equipment is sold on January 2, Year 4, for $495,000 (instead of $426,500), journalize the entry to record the sale. Descriptions are not required but please include the date. DR CR Date Account 0 6 D

Name: anvasXXORiley Corp. acquired equipment on January 2, Year 1, at a cos
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Description: anvasXXORiley Corp. acquired equipment on January 2, Year 1, at a cost of $570,000 with an estimated useful life of twelve years and an estimated residual value of $49,500. Please be sure to label each section of your answer below.(a) What is the an

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

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