Question 5: 10 Points
Jann Corporation purchased an equipment on July 1, 2016, for $800,000. Management
depreciated the equipment using double-declining balance, with an estimated useful life of ten
years and $80,000 residual value. On June 30, 2018, Jann Corp. decided to sell the equipment to
Murry Corp for $650,000. Prepare the journal entry to record the sale of equipment.
P=$800000
Account
Dr.
Cr.
stion 6: 20 Points
April 1, 2018, ABC purchased an existing factory for 2 million. The price included title te
the factory building, manufacturing equipment, and a patent on a process the equipment
At the time of the purchase, the assets fair value were:
end
Elding
$450k
$875k
sipment $625k
ent
$550k
mpany placed the assets into use on June 1, 2018 and decided that salvage value and
life of the assets purchased would be:
Salvage Value Estimate Life-(yrs)
