I tried so many different ways and I can't get the right answer in the letter b.

Equipment accquired on January 5, 2009, at a cost of $1177,200, has an estimated useful life of 15 years, has an estimated residual value of $ 97,200, and is depreciated by the straight-line method.
a. What was the book value of the equipment at December 31, 2012, the end of the year?
Answer. 889,200

b. Assume that the equipment was sold on April 1, 2013, for $ 801,500.
??

A is correct.

For B you take your depreiation rate per year times 3 months divided by 12 months to get your depreciation for 3 months out of the year. This gets your depreciaiton amount up to date.

Your journal entries will be:
Debit Cash for the amount received
Debit Accumulated Depreciation for the amount of depreciation calculated in a and b.
Credit Equipment for the cost of equipment acquired in Jan 2009
Credit Gain on Sale of equipment for the difference between your debits and credits(if debits are more than your Credits)
Debit Loss on Sale of equipment for the difference between your debits and credits (if credits are more than your debits).

[QUOTE=pready;3282897]A is correct.

For B you take your depreiation rate per year times 3 months divided by 12 months to get your depreciation for 3 months out of the year. This gets your depreciaiton amount up to date.

Your journal entries will be:
Debit Cash for the amount received
Debit Accumulated Depreciation for the amount of depreciation calculated in a and b.
Credit Equipment for the cost of equipment acquired in Jan 2009
Credit Gain on Sale of equipment for the difference between your debits and credits(if debits are more than your Credits)
Debit Loss on Sale of equipment for the difference between your debits and credits (if credits are more than your debits).[/QU

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Originally Posted by makami4

ok...which one is my depreciation rate?

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I got the answer... thank you so much for your help!