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5. Egan Company sold used equipment for $180,000 cash. The equipment was purchased 7 years ago for a cost of $720,000. It has been depreciated

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5. Egan Company sold used equipment for $180,000 cash. The equipment was purchased 7 years ago for a cost of $720,000. It has been depreciated using the straight-line method over an estimated useful life of 10 years with an estimated residual value of $70,000. Record the journal entry at the end of year seven for the asset's disposal assuming the seventh year's depreciation had been recorded

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