A construction company disposed of equipment for $14,200 cash dated April 1, 2005 that had cost $35,000 on January 1, 2001. The equipment had a salvage value of $5,000 with a useful life of 10 years. The type of depreciation method used is double-declining-balance . The accumulated depreciation was $20,664 dated December 31, 2004.

Questions

2.1 Prepare a journal entry to record depreciation for 2005 up to the date of disposal of the equipment.

2.2 Prepare a journal entry to record the disposal of the equipment