ABC company purchased equipment on January 1, 2015, for $50,000, with an estimated useful life of 5 years and an estimated residual value of $5,000. Assume the equipment was sold on April 30th 2017 for $25,000

Prepare journal entries for the following:

A) Calculate depreciation expense for 2015 and 2016 using straight line method of depreciation. Prepare the journal entry to record depreciation

B) Calculate depreciation for 2017 and record the journal entry

C) Prepare the journal entry for the sale of the equipment