Ivanhoe Co. purchased equipment on March 1, 2015, for $110,000 on account. The equipment had an estimated useful life of five years, with a residual value of $5,000. The equipment is disposed of on February 1, 2018. Ivanhoe Co. uses the diminishing-balance method of depreciation with a 20% rate and calculates depreciation for partial periods to the nearest month. The company has an August 31 year end.

Record the acquisition of the equipment on March 1, 2015. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Mar. 1

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Record depreciation at August 31, 2015, 2016, and 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 2015

Date	Account Titles and Explanation	Debit	Credit
Aug. 31

2016

Date	Account Titles and Explanation	Debit	Credit
Aug. 31

2017

Date	Account Titles and Explanation	Debit	Credit
Aug. 31

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Record the disposal on February 1, 2018, under the following assumptions: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

1.		It was scrapped with no residual value.
2.		It was sold for $62,720.
3.		It was sold for $52,990.
4.		It was traded for new equipment with a list price of $95,500. Ivanhoe was given a trade-in allowance of $51,500 on the old equipment and paid the balance in cash. Ivanhoe determined the old equipments fair value to be $55,140 at the date of the exchange.

	Date	Account Titles and Explanation	Debit	Credit
	2018 Feb. 1
		(To record depreciation)
1.	Feb. 1
2.	Feb. 1
3.	Feb. 1
4.	Feb. 1