Acker Limited sold a piece of equipment on August 1, 2021, for proceeds of $22,000. The equipment had an original value of $60,000 and was purchased on January 1, 2018. It was estimated to have a residual value of $3,000 and 5-year useful life. Acker uses the straight-line method. Acker has a December 31 year-end.

Instructions

Journalize all entries required to update depreciation and record the sale of the asset in 2020 (Note: Accumulated depreciation on Dec 31, 2019, is $ 34,200)