Straight-line depreciation and long-term asset disposal (Learning Objectives 3 & 5) 1520 min. On January 2, 2014, Sparkle Lighting purchased showroom fixtures for $20,000 cash,

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Straight-line depreciation and long-term asset disposal

(Learning Objectives 3 & 5) 15–20 min.

On January 2, 2014, Sparkle Lighting purchased showroom fixtures for $20,000 cash, expecting the fixtures to remain in service for 10 years. Sparkle Lighting has depreciated the fixtures on a straight-line basis, with zero residual value. On June 30, 2015, Sparkle Lighting sold the fixtures for $14,500 cash. Record both the depreciation expense on the fixtures for 2015 and the sale of the fixtures on June 30, 2015. Round intermediate calculations to the nearest cent and final answers to the nearest whole dollar.

AppendixLO1