Equipment acquired on January 2, 2011 at a cost of $273,500 has an estimated useful life of eight years and an estimated residual value of $35,500.
a) What was the annual amount of depreciation for the years 2011,2012, and 2013 assumming straight line method used?
b) What was the book value of the equipment on January 1, 2014?
c) Assuming that the equipment was sold on January 2. 2014, for $170,500, journalize the entry to record the scale.
d) Assuming that equipment had been sold on January 2 2014 for 189,000 instead of 170,500 journalize the entry to record the sale.