90.2K

Verified Solution

Link Copied!

Requirement 2: Assume Equipment is Sold for Amount in Cell B9

(a) Calculate Gain or Loss on Sale:

(Use cells A2 to B11 from the given information above to complete this question. Accumulated depreciation should be presented as a positive amount. Hint: In cell A43, input a conditional IF statement to return the word "Gain" if cell C43 is a positive amount or "Loss" if cell C43 is a negative amount.)

Sale amount

Less:

Original cost of equipment

Less: Accumulated depreciation

Book value at end of year 3

IE 07-02 (Static) Using Excel to Calculate the Gain or Loss on Disposal of Depreciable Assets [LO 7-6] On January 1, Year 1, a company purchased equipment. The details of the equipment purchase are below. Required: 1. Based on the information above, calculate Depreciation Expense, Accumulated Depreciation and Book Value of the equipment using the Straight-Line method for years 1-3. 2. Assume that the equipment is sold at the end of year 3 for the sale amount in cell B9. (a) Calculate the Gain or Loss on sale. (b) Prepare the journal entry to record sale of the asset. 3. Assume that the equipment is sold at the end of year 3 for the sale amount in cell B10. (a) Calculate the Gain or Loss on sale. (b) Prepare the journal entry to record sale of the asset. 4. Assume that the equipment is retired at the end of year 3 (zero proceeds, given in cell B11). (a) Calculate the Gain or Loss on retirement. (b) Prepare the journal entry to record retirement of the asset. 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect

Answer & Explanation Solved by verified expert

See Answer