Question

Equipment was acquired at the beginning of the year at a cost of $36,500. the equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $710. question content area a. what was the depreciation for the first year? b. assuming the equipment was sold at the end of year 2 for $8,440, determine the gain or loss on the sale of the equipment. question content area c. journalize the entry to record the sale. if an amount box does not require an entry, leave it blank.

Answer 1

Computers, trucks, and production equipment are all examples of equipment. they're tangible due to the fact they have got a bodily shape n contrast to intangible belongings inclusive of patents, emblems, or copyrights that do not.

The system changed into obtained at the beginning of the year at a value of $7, 300.

calculate the gain or loss from the sale of equipment as follows:

step 1:

Calculate the sporting value of the device on the give up of the second one 12 months as follows:

1 book cost depreciation carrying value at the give-up of the 12 months

12 months 1 $36,500 $7,300    $29,200

12 months 2 $29,2900              $23,360

Account Titles and clarification Debbit credit

coins $8440

Accountant Depreciation equipment $thirteen, one hundred forty

loss of sale gadget $14,920

equipment $36,500

Depreciation for first yr is $36,500x10percentx2

=$7,300

subsequently, depreciation for the first 12 months is $7,300.

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