Make necessary journal entries for the following events. Ass…
Make necessary journal entries for the following events. Assume the firm recognizes depreciation expense annually. On January 1, 2010, Hampton purchased equipment at a cost of $400,000. The installation cost is $20,000. The equipment has a 10-year life and an expected salvage value at the end of 10 years of $20,000. On January 1, 2011, Hampton revised the useful life of the computers to a total of 14 years to replace the original assumption of 10 years and the salvage value to $30,000. On March 31, 2012, Hampton sold the equipment for $320,000.