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Freeman Landscaping purchased a tractor at a cost of $ 4 0 , 0 0 0 and sold it three years later for $ 2

Freeman Landscaping purchased a tractor at a cost of $40,000 and sold it three years later for $20,300. Freeman accounted for depreciation using the straight-line method, a five-year service life, and a $2,500 residual value. Tractors are included in the Equipment account.
Required:
1. Record the sale.

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