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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

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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 January 1, Year 5 for $22,500, the Journal entry to record the sale will include a Multiple Choice Credit to loss on sale for $2.500 Debit to gain on sale for $2.500 Debit to accumulated depreciation for $20,000 Debit to quipment for $45.000 Credit to catch for $22.500

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