Abbott Landscaping purchased a tractor at a cost of $42,000 and disposed of it three entire years later. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $3,000 residual value. Tractors are included in the Equipment account.

Required:

1. Calculate the annual depreciation amount and accumulated depreciation by the end of year three (0.5 point).

Annual Depreciation = _________________________________

Accumulated Depreciation = _________________________________

2. Assume the tractor is retired by the end of year three. Record the retirement (1.5 points).

	Debit	Credit

3. Assume the tractor was sold for $21,600 by the end of year three. Record the sale (1.5 points).

	Debit	Credit

4. Assume the tractor was sold for $13,600 by the end of year three. Record the sale (1.5 points).

	Debit	Credit