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Company A purchased equipment in 2026 for $104,000 and estimated an $8,000 salvage value at the end of the equipment's 10-year useful life. At December
Company A purchased equipment in 2026 for $104,000 and estimated an $8,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2027, there was $67,200 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2028, the equipment was sold for $21,000.
Prepare the appropriate journal entries to remove the equipment from the books of Company A on March 31, 2028.
(b) Company B sold equipment for $11,000. The equipment originally cost $25,000 in 2025 and $6,000 was spent on a major overhaul in 2028 (charged to the Equipment account). Accumulated Depreciation on the equipment to the date of disposal was $20,000.
Prepare the appropriate journal entry to record the disposition of the equipment.
(c) Company C sold equipment that had a book value of $13,500 for $15,000. The equipment originally cost $45,000 and it is estimated that it would cost $57,000 to replace the equipment.
Prepare the appropriate journal entries to record the dispositions of the equipment.
Prepare the appropriate journal entries to remove the equipment from the books of Company A on March 31, 2028.
(b) Company B sold equipment for $11,000. The equipment originally cost $25,000 in 2025 and $6,000 was spent on a major overhaul in 2028 (charged to the Equipment account). Accumulated Depreciation on the equipment to the date of disposal was $20,000.
Prepare the appropriate journal entry to record the disposition of the equipment.
(c) Company C sold equipment that had a book value of $13,500 for $15,000. The equipment originally cost $45,000 and it is estimated that it would cost $57,000 to replace the equipment.
Prepare the appropriate journal entries to record the dispositions of the equipment.
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