Disposition of long-term assets (Learning Objective 5) 10–15 min.

Assume that Excell Corporation’s comparative balance sheet reported these amounts:

Plant and Equipment..................................................................

Less: Accumulated Depreciation ................................................

Net Plant and Equipment............................................................

$ 610,000 120,600

$ 489,400 2012

$ 645,000 137,400

$ 507,600 December 31 2013 Requirement 1. Assume that on January 2, 2014, Henry sold 1/6 of its plant and equipment for

$122,000 in cash. Journalize this transaction for Excell.

AppendixLO1