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) $7,300 cash. The company recorded the car as equipment. If an amount box does not require an entry, leave it blank. a. Cash 6,500 Accumulated Depreciation 7,000 Equipment 13,500 b. Cash Accumulated Depreciation 7,000 Loss on Disposal of Property, Plant, and Equipment 2,500 Equipment 13,500 c. Cash 7,300 Equipment X 6,500X Gain on Disposal of Property, Plant, and Equipment 800