3. Counselors of

CartersvilleCartersville

purchased equipment on

JanuaryJanuary

1,

20172017,

for

$ 46 comma 000$46,000.

Counselors of

CartersvilleCartersville

expected the equipment to last for

sixsix

years and have a residual value of

$ 1 comma 000$1,000.

Suppose Counselors of

CartersvilleCartersville

sold the equipment for

$ 34 comma 500$34,500

on

December 31 comma 2018 commaDecember 31, 2018,

after using the equipment for

twotwo

full years. Assume depreciation for

20182018

has been recorded. Journalize the sale of the equipment, assuming straight-line depreciation was used.

First, calculate any gain or loss on the disposal of the equipment.

Market value of assets received
Less: Book value of asset disposed of
Cost
Less: Accumulated Depreciation
Gain or (Loss)

Now, journalize the sale of the equipment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)