Entries for Sale of Fixed Asset

Equipment acquired on January 8, 2011, at a cost of $420,000, has an estimated useful life of 15 years, has an estimated residual value of $30,000, and is depreciated by thestraight-line method.

a. What was the book value of the equipment at December 31, 2014, the end of the year?

$

b. Assume that the equipment was sold on October 1, 2015, for $275,000.

1. Journalize the entry to record depreciation for the nine months until the sale date.

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