Posted by Ronnie on .
I continue getting the wrong totals can you please help me solve this problem and give me the correct formula and Journal entries.
On Jan 1 2004 Brown Airways purchased an airplane for 34,450,000. Brown airways expect the plane to remain useful for 6 years and have a residual value of 2,650,000. Brown Airways uses the straight line method to depreciate its airplanes. Brown Airways flew the plane for 3 years and sold it on Jan 1, 2007 for 8,400,000.
Compute accumulated depreciation on the airplane at Jan 1, 2007 (same as Dec 31, 2006) and record sale of the plane on Jan 1, 2007.