Straight-line depreciation and long-term asset disposal (Learning Objectives 3 & 5) 15–20 min.

On January 2, 2014, Lithonia Lighting purchased showroom fixtures for $18,000 cash, expecting the fixtures to remain in service for eight years. Lithonia Lighting has depreciated the fixtures on a straight-line basis, with zero residual value. On August 31, 2015, Lithonia Lighting sold the fixtures for $13,200 cash. Record both the depreciation expense on the fixtures for 2015 and the sale of the fixtures on August 31, 2015. Round intermediate calculations to the nearest cent and final answers to the nearest whole dollar.

AppendixLO1