Transcribed Image Text: Equipment acquired on January 6 at a cost of $198,700, has an estimated useful life of 9 years and an estimated residual value of $25,900. a. What was

Excerpt
require an entry, leave it blank. d. Assuming that the equipment had been sold on January 3 of Year 4 for $143,900 instead of $134,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. 000

Transcribed Image Text: Equipment acquired on January 6 at a cost of $198,700, has an estimated useful life of 9 years and an estimated residual value of $25,900.
a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?
Year
Depreciation Expense
Year 1
Year 2
2$
Year 3
b. What was the book value of the equipment on January 1 of Year 4?
$4
c. Assuming that the equipment was sold on January 3 of Year 4 for $134,000, journalize the entry to record the sale. If an amount box does not require an entry, leave
it blank.
d. Assuming that the equipment had been sold on January 3 of Year 4 for $143,900 instead of $134,000, journalize the entry to record the sale. If an amount box does
not require an entry, leave it blank.
000

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