Nash Company shows the following entries in its Equipment account for 2021

Accounting Dec 02, 2020

Nash Company shows the following entries in its Equipment account for 2021. All amounts are based on historical cost.
Equipment
2021 2021 Jan. 1 Balance 134,500 June 30 Cost of equipment sold Aug. 10 Purchases 34,510 (purchased prior to 2021) 23,620 12 Freight on equipment purchased 775 25 Installation costs 2,940 Nov. 10 Repairs 460
Prepare correcting entry if necessary.
Assuming that depreciation is to be charged for a full year on the ending balance in the asset account, compute the proper depreciation charge for 2021 under each of the methods listed below. Assume an estimated life of 10 years, with no salvage value. The machinery included in the January 1, 2021, balance was purchased in 2019. (Round answers to 0 decimal places, e.g. 45,892.)
(1) Straight-line
(2) Sum-of-the-years'-digits

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