Question

A depreciable asset costing $75,000 is purchased on September 1, Year 1. The asset is estimated…

A depreciable asset costing $75,000 is purchased on September 1, Year 1. The asset is estimated to have a salvage value of $10,000 and an estimated useful life of 4years. Double-declining-balance depreciation is used. If the asset is sold on December 31, Year 3 for $13,000, the journal entry to record the sale will include:

A-A credit to gain on sale for $8,000.

B-A debit to loss on sale for $2,625.

C-A credit to accumulated depreciation for $59,375.

D-A debit to loss on sale for $3,042.

E-A credit to gain on sale for $4,979.

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