Jane Corp. owns equipment with an estimated residual value of $ 5,500 and an estimated useful life of 10 years . The equipment was purchased for $ 88,000 on January 1 , four and years ago . Jane disposes of this equipment due to electrical malfunction . The company expects to receive no insurance recovery on the loss . Record the entries required on dispo equipment assuming that the disposal took place on July 1 of the current year and Depreciation was last updated on December 31 of the prior year. Required Post the journal entries for depreciation expense (involves 2 accounts) and disposal of equipment ( involves 3 accounts)