(b) Cash.60 42,000 Accumulated Depreciation-Equipment... 77,000 Loss on Disposal. 25,000 Equipment. 144,000 Proceeds from sale $42,000 Cost of equipment 5144.000 Less: Accumulated depreciation 77,000* Carrying amount at date of disposal 67.000 Loss on disposal $(25.000) * Depreciation Jan. 1, 2016 - Dec. 31, 2017 ($144,000 - $4,000) + 5 = $28,000 x 2 years $56,000 Depreciation Jan. 1, 2018 - Sept. 30, 2018 $28,000 x 9/12 21,000 Accumulated depreciation $77,000