= Marks Consulting purchased equipment costing $45.000 on January 1, Year 1. The equipment is estimated to have a salvage value of $5,000 and an estimated useful life of 8 years. Straight-line depreciation is used. If the equipment is sold on July 1, Year 5 for $20,000, the journal entry to record the sale will include a 111 Multiple Choice Credit to cash for $20,000 Debt to accumulated depreciation for $22.500 O o oo O Debit to loss on sale for $10,000 Credit to loss on sale for $10.000 On January 1, a company issues bonds dated January 1 with a par value of $600,000. The bonds mature in 3 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The bonds are sold for $564,000. The journal entry to record the first interest payment using straight-line amortization Multiple Choice Debit interest Payable $21,000, credit Cash $21000 O Debit interest Expense $21000 Credit Cash $21000 Debt interest Expense 527000 credit Discount on Bonds Payable $6.000 Credit Cash $21000 Debit interest Expense $15.000 de Descount on Bonds Payable $6.000. Credit Cash $21,000