ABC Co sells equipment that it purchased in 2019 for $120,000. The equipment has a useful life of 6 years and has been depreciated annually. ABC Co recorded depreciation for the equipment last on December 31, 2022 so the balance in Accumulated Depreciation on that date is $80,000. ABC sells the equipment on March 31, 2024 for $45,000 cash.

a. record the becessary journal entry to update depreciation if needed and to record the sale of the equipment.

b. assume the same information as above but ABC sells the equipmebt on March 31, 2024 and receives $25,000 cash

record the necessary journal entry to update depreciation if needed and to record the sale of the equipment.