Disposing of an asset (Learning Objective 5) 15–20 min.

Dandachli Corporation uses straight-line depreciation. Based on 2014 transactions listed below, journalize all entries required, including those to update depreciation on assets disposed of, where applicable.

1 30 31 Jan June Dec Retired equipment purchased on January 1, 2004. It cost $53,000 and had a useful life of 10 years with no residual value.

Sold equipment purchased on January 1, 2012. It cost $78,000 and had a useful life of 3 years with no residual value. It sold for $9,000 cash.

Sold equipment for $12,500 cash. It cost $43,000 when purchased on January 1, 2011, and was depreciated based on a 5-year useful life with a $3,000 residual value.

AppendixLO1