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Counselors of Atlanta purchased equipment on January 1 , 2 0 1 5 , for $ 2 0 , 0 0 0 . Counselors of

Counselors of Atlanta purchased equipment on January 1,2015, for $20,000. Counselors of Atlanta expected the equipment to last for four years and have a residual value of $2,000. Suppose Counselors of Atlanta sold the equipment for $8,000 on December 31,2017, after using the equipment for three full years. Assume depreciation for 2017 has been recorded. Journalize the sale of the equipment, assuming straight-line depreciation was used.
First, calculate any gain or loss on the disposal of the equipment.
Market value of assets received
Less: Book value of asset disposed of
Cost
Less: Accumulated Depreciation
Gain or (Loss)
Now, journalize the sale of the equipment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
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