Mackay Industries had a piece of equipment that cost $32,000 and had accumulated depreciation of $28,000.

Requirement

1. Record the disposition of the equipment assuming the following independent situations:

a. Mackay discarded the equipment receiving $0.

b. Mackay sold the equipment for $6,000 cash.

c. Mackay traded the equipment in on a new piece of equipment costing $35,000. Mackay was granted a $5,000 trade-in allowance for the old equipment and paid the difference in cash.

d. Mackay traded the equipment in on a new piece of equipment costing $25,000. Mackay was granted a $3,000 trade-in allowance for the old equipment and signed a note payable for the difference.