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  3. 1. on august 16, 2016, cory corp. acquires a new p

1. On August 16, 2016, Cory Corp. acquires a new piece of equipment for $80,000....

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Accounting

1. On August 16, 2016, Cory Corp. acquires a new piece of equipment for $80,000. Bryant depreciates equipment over ten years, assumes the residual value to be 5% of the purchase price, and uses a half-year convention in the year of acquisition. Record the journal entries for depreciation for 2017 and 2018.

Year Account Name And Explanation Debit Credit
2017 Depreciation expense $7,600
Accumulated depreciation on New equipment $7,600
(Depreciation charged for 2017)
2018 Depreciation expense $7,600
Accumulated depreciation on New equipment $7,600
(Depreciation Charged for 2018)

2. Related to the above Question 17, if Bryant Corp. sells the equipment late in December 2018, for $70,000, what is the gain or loss on the sale?

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