Prepare journal entries to record these transactions: (a) Rangel Company retires its delivery equipment, which cost $41,000.

Question:

Prepare journal entries to record these transactions:
(a) Rangel Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No is received.
(b) Assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,200 instead of $41,000.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...