Carlton Company sells office equipment on September 30, 2007, for $21,000 plant assets. cash. The office equipment originally cost $72,000 and as of January 1, 2007, had accu-

(SO 5) mulated depreciation of $42,000. Depreciation for the first 9 months of 2007 is $7,500.

Prepare the journal entries to

(a) update depreciation to September 30, 2007, and (b)

record the sale of the equipment.

Account for intangibles—