Question

Equipment was acquired at the beginning of the year at a cost of $79,140. The equipment was depreciated using the straight-line method based on an estimated useful life of six years and an estimated residual value of $7,920. a. What was the depreciation expense for the first year?$ b. Assuming the equipment was sold at the end of the second year for $59,800, determine the gain or loss on sale of the equipment.$ c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

          Equipment was acquired at the beginning of the year at a cost of $79,140. The equipment was depreciated using the straight-line method based on an estimated useful life of six years and an estimated residual value of $7,920.
a.  What was the depreciation expense for the first year?$
b.  Assuming the equipment was sold at the end of the second year for $59,800, determine the gain or loss on sale of the equipment.$
c.  Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Added by Angela F.

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