Exercise 8-11A Effect of the disposal of plant assets on the financial statements Un Company sold office equipment with a cost of $23,000 and accumulated depreciation of $12,000 for $14,000. Required a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? c. How would the sale affect net income increase, decrease, no effect) and by how much? Review View Acrobat Home Formulas Insert Page Layout 12 Anal 10 General - Welt Copy Conditions Paste U- . Merge Center $. % Format Painter Formatting Ciboard Font Alignment Number (a) Using the straight line method, compute the depreciation expense for Year 1 and Year 2 E G 1 Using the straight line method, compute the depreciation expense for Year 1 and Year 2 IE8.11A 2 3 4 5 5 7 9 10 b) Prepare the journal entry to record the Year 1 depreciation 11 12 Date Account Titles Debit Credit 13 14 15 16 17 18 19 20 (c) Assume theo was sold on January 1, Year 3 for $22.000. Prepare the journal entry for the sale of the taxi in Year 3 21 22 Date Account Titles Debit Credit 22 25 22 20 30 31 32 33 35 36 37 10 40 41 42 43 45 46 EB 11A Type here to search