Question: Equipment Acquired on January 5, 2011 at a cost of $494,400 has an estimated useful life of 15 years, has an estimated residual value of $40,800 and is depreciated by the straight line method.
A) What is the book value of the equipment at December 31, 2014 at the end of the year?
B) Assume the equipment was sold on October 1,2015 for $322,700. Journalize the entry to record depreciation for the 9 months until the sale date.