10. An asset acquired January 1,2016, for $15,500 with an estimated 10-year life

Question

10. An asset acquired January 1,2016, for $15,500 with an estimated 10-year life and no residual value is being. depreclated in an equipment group asset account that has an average service life of eight years. The asset is sold on December 31, 2017, for $6,000. The entry to record the sale would be: Cash 6,000 6,000 Equipment Cash Accumulated depreciation 6,000 9,500 Equipment 15.500 6,000 9.500 Loss on sale of equipment Equipment 5,500 Accumulated depreciation Loss on sale of equipment 6,000 3,875 5,625 15,500 MacBook Air esc FS 3 4

Explanation / Answer

Cash 6000 Accumulated depreciation 3875 =(15500/8*2) Loss on sale of equipment 5625         Equipment 15500 Option 4 is correct 2 Gain = 92000-81800 = 10200 Option 2 is correct

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