Demonstration Probiem. Cé April, 2015; Jones Industrizs purchased new equipment at a cost of $325,000;, of this equipment was estimated at fivé years, with a residual value of $25,000. ine, with’ depezciation for fractionél years rounded to the nearest whole't bs. 200'percént declining-balance, with the kr!?year convention: Limit depreciati ~ amount that reduces the undépreciated cost tothe estimated residual val © Assime thatthe equipment is sold atthe énd of December 2017 for $178:700 casts ecescary gain or lo:3 resulting from the sale under the straight-line metbod, Scanned with CamScanner@. Equipment was acquired on January 1, 2008, at a cost of $264,000, has an estimated useful life of eight years and an estimated residual value of $31,500. Instructions _. a) What was the annual amount of depreciation for the years 2008, 2009, and 2010, using the straight-line method of depreciation? b) What was the book value of the equipment on Jan 1, 2010? 6) Assuming that the equipment was sold on Jan 4, 2010, for $168,500, journalize the entry to record the sale. 4) Assuming the equipment had been sold on Jan 4, 2010, for $180,000 inst : joumalize the entry to record the sale, Me gee ete 00, Scanned with CamScanner;xgsets.and Intangible Assets ‘40g. «Chapter 9 “Fined l cost of $97,000. The equipment was depre Example eae useful life of hine.years and an estimat Equipment was acquired at thé beginning of the year at @ Eited using the straight-line method based on an estimater residual value of $10,000. ‘a What was the depreciation for the first year? b.. Assuming the equipment was sold at the end “joss on sale of the equipment. ©” c Journalize the entry ta record the sale of the:second year for $78,000, determine the gair 7 Scanned with CamScanner