1. ABC Inc. purchased equipment on January 1, 2007 for $110.000. The mentis expected to have a useful life of 8 years or

[answerhappygod]

1 Abc Inc Purchased Equipment On January 1 2007 For 110 000 The Mentis Expected To Have A Useful Life Of 8 Years Or 1 (45.98 KiB) Viewed 47 times

1. ABC Inc. purchased equipment on January 1, 2007 for $110.000. The mentis expected to have a useful life of 8 years or 40.000 estimated operating hours and testimated residus or salvage value of $18,000. The equipment had the following usage during the first two years Year 2007 2008 Actual hours of 4,500 7.000 Determine the amount of depreciation pense for just the first two years for each of the three methods of depreciation shown in the table below. Year Double Declining balance Straight-line Units-of-production 2007 2008 2. Based on your answer above, prepare the journal entry to record the depreciation expense for the year 2008 using only the straight-line method. 3. For the straight-line method only: Based on your answers to the table above, what would be the balance in the "Accumulated Depreciation" account at the end of the year 2008? 4. Use the following information for the next two questions related to a truck that was sold. Original cost: $30,000 Salvage value: $ 5,000 Useful life: 5 years Total accumulated depreciation to date at the time of the sale: $17,000 Price that the truck was sold for (proceeds): $15,000 . What is the book value of the asset at the time of the sale? b. Prepare the journal entry to record the sale of the asset.