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Disposal of Fixed Asset Perfect Auto Rentals sold one of its cars on January 1. Perfect had acquired the car 2 years earlier for
Disposal of Fixed Asset Perfect Auto Rentals sold one of its cars on January 1. Perfect had acquired the car 2 years earlier for $13,500. At acquisition, Perfect assumed that the car would have an estimated life of 3 years and a residual value of $3,000. Assume that Perfect had properly used the straight-line depreciation method in previous years. Required: Prepare the journal entry to record the sale of the car assuming the car sold for (a) $6,500 cash, (b) $4,000 cash, and (c) $6,600 cash. The company recorded the car as equipment. If an amount box does not require an entry, leave it blank. a. b. 0000 0000 0000
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