Assume that on January 2, 2014, Design House of Nebraska purchased fixtures for $9,200 cash,…

Assume that on January 2, 2014, Design House of Nebraska purchased fixtures for $9,200 cash,…

Assume that on January 2, 2014, Design House of Nebraska purchased fixtures for $9,200 cash, expecting the fixtures to remain in service for five years. Design House has depreciated the fixtures on a double-declining-balance basis, with $1,100 estimated residual value. On October 31, 2015, Design House sold the fixtures for $2,700 cash. Record both the depreciation expense on the fixtures for 2015 and then the sale of the fixtures. Apart from your journal entry, also show how to compute the gain or loss on Design House’s disposal of these fixtures.View Solution:
Assume that on January 2 2014 Design House of Nebraska

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