Sale of Equipment Equipment was acquired at the beginning of the year at a cost

Question

Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $662,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $41,335 a. What was the depreciation for the first year? Round your answer to the nearest cent. 69,011.4 b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for 103,458 Round your answer to the nearest cent and enter as a positive amount. c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

Explanation / Answer

a) Depreciation for first year (662,500   - 41335)/9 69018.33 b) origibal cost 662500.00 Accumulated dep (69018.33*8) 552146.67 Book value 110353.33 Sale value 103458.00 loss on sale 6895.33 answer c) Cash 103458.00 Accumulated depreciation 552146.67 Loss on sale 6895.33 Equipment 662500.00

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