Equipment acquired on January 8 at a cost of $212,000 has anestimated useful life of 15 years, has an estimated residual valueof $14,000, and is depreciated by the straight-line method.
a. What was the book value of the equipment atDecember 31 the end of the fifth year?
Assume that the equipment was sold on April 1 of the sixth yearfor $105,800.
1. Journalize the entry to record depreciationfor the three months until the sale date. If an amount box does notrequire an entry, leave it blank.
Depreciation expense-equipment
Accumulated depreciation-equipment
2. Journalize the entry to record the sale ofthe equipment. If an amount box does not require an entry, leave itblank.
Cash
Accumulated Depreciation-equipment
Loss on Sale of Equipment
Equipment
