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Business, 14.05.2020 17:57 orlando19882000

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. Refer to the Chart of Accounts for exact wording of account titles. 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. Refer to the Chart of Accounts for exact wording of account titles.

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Equipment acquired on January 6 at a cost of $375,000, has an estimated useful life of 20 years and...

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