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Business, 07.06.2021 14:00 luvberries2276
Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years
and an estimated residual value of $25,000.
A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method
of depreciation?
B. What was the book value of the equipment on January 1 of Year 4?
C. Assuming that the equipment was sold on January 3 of Year 4 for $300,000, journalize the
entry to record the sale.
D. Assuming that the equipment had been sold on January 3 of Year 4 for $325,000 instead
of $300,000, journalize the entry to record the sale.
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Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years
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