a

3. Counselors of Douglasville purchased equipment on January 1, 2015, for S67,500. Counselors of Douglasville expected the equipment to last for seven years and have a residual value of $1,000. Suppose Counselors of Douglasville sold the equipment for $21,400 on December 31, 2019, after using the equipment for five full years. Assume depreciation for 2019 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 21000 Cost 67500 Less: Accumulated Depreciation Gain or (Loss)