Description of this paper

Equipment was acquired at the beginning of the year at a cost of $75,000.

Description

solution


Question

Equipment was acquired at the beginning of the year at a cost of $75,000. The equipment was;depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated;residual value of $7,500.;(a) What was the depreciation for the first year?;(b) Assuming the equipment was sold at the end of the second year for $57,000, determine the gain or loss on sale of the equipment.;(c) Journalize the entry to record the sale.

 

Paper#27772 | Written in 18-Jul-2015

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