Asked by Daisy Terrado on Jul 21, 2024
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On April 1,2015,due to obsolescence resulting from a new technology,a company discarded a computer that cost $5,000,had a useful life of 4 years,and a salvage value of $400.Based on straight-line depreciation,the accumulated depreciation as of December 31,2014 was $3,450.
a.Prepare the journal entry to record depreciation up to the date of disposal of the computer.
b.Prepare the journal entry to record the disposal of the computer.
Straight-Line Depreciation
A procedure for spreading out the cost of a solid asset over the duration of its usability in equal annual payments.
Obsolescence
The process or condition of a product or component becoming outdated or no longer useful due to advancements or changes in technology, market demand, or other factors.
Salvage Value
The anticipated recovery value of an asset after its period of usefulness ends.
- Determine the profit or deficit resulting from the sale of fixed assets.
- Measure and record the diminution in value of permanent assets employing different approaches.
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Learning Objectives
- Determine the profit or deficit resulting from the sale of fixed assets.
- Measure and record the diminution in value of permanent assets employing different approaches.
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