Entries for Sale of Fixed Asset

Equipment acquired on January 8 at a cost of $132,860, has an estimated useful life of 16 years, has an estimated residual value of $7,900, and is depreciated by the straight-line method.

a. What was the book value of the equipment at December 31 the end of the fourth year? $

b. Assuming that the equipment was sold on April 1 of the fifth year for 93,237.

1. Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required.

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2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations.

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