A company has the following fixed asset data:Cost: $500,000Accumulated depreciation: $200,000Book value: $300,000Useful life: 10...
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Accounting
A company has the following fixed asset data:
- Cost: $500,000
- Accumulated depreciation: $200,000
- Book value: $300,000
- Useful life: 10 years
- Residual value: $50,000
(a) Calculate the annual depreciation expense using the straight-line method. (b) Determine the book value at the end of year 5. (c) Prepare the journal entries for the disposal of the asset at the end of year 5 for $250,000. (d) Discuss the impact of the disposal on financial statements.
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