#4: Disposal of fixed asset (show your
work/calculations for each section in addition to answering the item)
acquired on January 4, 2009, at a cost of $425,000, has an estimated useful
life of nine years and an estimated residual value of $65,000.
a. What was
the annual amount of depreciation for the years 2009, 2010, and 2011, using the
straight-line method of depreciation?
b. What was
the book value of the equipment on January 1, 2012?
that the equipment was sold on January 9, 2012, for $290,000, journalize the
entry to record the sale.
that the equipment had been sold on January 9, 2012, for $310,000 instead of
$290,000, journalize the entry to record the sale.