18 lig 10-4Axicx
Disponal of nxed asset
Equipment acquired on January 6 at a cost of \( \$ 270,500 \) has an estimated useful life of 7 years and an estimated renildual value of \( \$ 35,300 \).
a. What was the annual amount of depreciation for Years 1-3 using the straight-line method of depreciation?
\begin{tabular}{ll}
Year & Depreciation Expense \\
- Year 1 & \( \square \) \\
Year 2 & \\
Year 3 &
\end{tabular}
b. What was the book value of the equipment on January 1 of Year 4 ?
S
c. Assuming that the equipment was sold on January 3 of Year 4 for \( \$ 161,200 \), journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
January 3 \( \qquad \)
\( \square \)
\( \square \)
\( \square \)
\( \square \)
\( \square \)
\( \qquad \)
\( \square \)
\( \square \)
\( \qquad \)
\( \square \)
\( \square \)
d. Assuming that the equipment had been sold on January 3 of Year 4 for \( \$ 173,100 \) instead of \( \$ 161,200 \), journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
January 3 \( \square \)
\( \square \)
\( \square \)
\( \square \)
\( \square \)
\( \square \)
Oreck My Work
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