Depreciate the equipment using the units of production method
The equipment is expected to work 90,000 hours during its 5 year useful life with a salvage value of $4,700. The productivity level is as follows:
Year 1 - 30,000 hours; Year 2 - 25,000 hours, Year 3 - 15,000 hours, Year 4 - 12,000 hours, Year 5 - 8,000 hours
The equipment was disposed of on January 1, Year 5 for $22,000. Prepare the journal entry to record the disposal of the asset
What is the gain or loss on disposal of the equipment
Equipment/Machine
Purchase Price	$ 45,000
Sales Taxes	3,900
Freight Insurance	600
Shipping/transport costs	1,700
Installation and Testing	1,500
Training costs	2,000
Total Acquisition cost	$ 54,700