Question
Karma Farming sells equipment on August 31 2020, for $20,000 cash. The equipment originallycost $60,000 and as of January 1, 2020, had accumulated depreciation of
Karma Farming sells equipment on August 31 2020, for $20,000 cash. The equipment originallycost $60,000 and as of January 1, 2020, had accumulated depreciation of $38,000. Depreciation forthe first 8 months of 2020 is $6,000.Instructions:Prepare the journal entries to (a) update depreciation to August 31, 2020 and (b) record the sale ofthe equipment.
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Intermediate Accounting
Authors: Earl K. Stice, James D. Stice
18th edition
538479736, 978-1111534783, 1111534780, 978-0538479738
