Cengage CengageNowy2 Onlir e Chegg Study Guided Solut v LT

Cengage CengageNowy2 Onlir × e Chegg Study! Guided Solut + v LT X v2 cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take; Ch 10-2 Practice Exercises eBook Show Me How Calculator Print item Sale of Equlpment 1. PE. 10-01.ALGO Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $47,270 2. PE.10-02.ALGO 3. PE.10-03.ALGO a. What was the depreclation for the first year? Round your answer to the nearest cent. 4. PE. 10-05.ALGO 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 $98,148 Round your answer to the nearest cent and enter as a positive amount. 5. PE.10-06.ALGO 6. PE 10-07.ALGO 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. Check My Work 2 more Check My Work uses remalning Previous Next Progress: 5/6 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Type here to search 1025 PM 2/1/2018 23

Solution

1-FIRST YEAR DEPRICIATION

=562500-47270=515230

DEPRICIATION FOR EACH YEAR=515230/9=57247

THEREFORE FIRST YEAR DEPRICIATION IS 57247.

2-DEPRICIATION FOR EIGHT YEARS-57247*8=457976

SO THE BOOK VALUE OF ASSET AT YEAR 8=515230-457976=57254

SALE VALUE=98148

THEREFORE GAIN=98148-57254=40894

3-JOURNAL ENTRY FOR SALE

BANK A/C (DEBIT)-98148

TO MACHINE A/C-57254

TO P/L ACCOUNT-40894

(BEING MACHINE SOLD AND GAIN RECORDED IN P/L)