As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Inc. sold shelving units (recorded as Equipment) that were 10 years old for $1,250 cash. The shelves originally cost $8,200 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $700.

Prepare the journal entry to record the sale of the shelving units.

a)Record the sale of the shelving units for $1,250.