r tomenerd bom basis, with zero rosidual value. On August 31, 2016, Couturo On J

Question

r tomenerd bom basis, with zero rosidual value. On August 31, 2016, Couturo On January 2, 2015, Couture Clothing Consignments purchased showroom fixturea for $16,000 cash, expocting tho fixtures to remain in service for five yoars. Couture has deprociated tho fixturos on a sold the fxtures for S7,600 cash Record bothdeprecietion expense for 2018 and sale of he fotures on August 31, 2018. (Record debits first, then credits. Select the explanation on the last line of the jcumal entry table.) Bagin by rocording the deprodiation exponse for 2016. Date and Explanation Debit Credit Aug. 31 Bafore reoording the salo of the fixtures, lot's caloulato any gain or loas on the aalo of the ixtures. Market value of assets received Less: Bock value of asset disposed of Less: Accum Gain or (Loss) Now, record the sale of ne fxtures on August 31, 2016. Date Debit Credit Aug. 31

Explanation / Answer

Depreciation for 2015=16000*40%= $6400 1 31-Aug Depreciation Expense 2560 =(16000-6400)*40%/12*8          Accumulated Depreciation 2560 2 Market value of assets receieved 7600 Less: Book value Cost 16000 Less Accumulated Depreciation 8960 7040 Gain(loss) 560 3 Cash 7600 Accumulated Depreciation 8960          Fixtures 16000          Gain on disposal 560

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