(Learning Objectives 2, 3: Analyzing the effect of a sale of a PPE; DDB depreciation)

Assume that on January 2, 20X6, LaSalle of Lyon purchased fi xtures for €8,300 cash, expecting the fi xtures to remain in service for fi ve years. LaSalle has depreciated the fi xtures on a double-declining-balance basis, with €1,700 estimated residual value. On September 30, 20X7, LaSalle sold the fi xtures for €2,300 cash. Record both the depreciation expense on the fi xtures for 20X7 and then the sale of the fi xtures. Apart from your journal entry, also show how to compute the gain or loss on LaSalle’s disposal of these fi xtures.