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Morris Inc. recorded the following transactions over the life of a piece of equipment purchased in Year 1: Jan. 1, Year 1 Purchased equipment for

Morris Inc. recorded the following transactions over the life of a piece of equipment purchased in Year 1:

Jan. 1, Year 1 Purchased equipment for $101,000 cash. The equipment was estimated to have a five-year life and $4,000 salvage value and was to be depreciated using the straight-line method.
Dec. 31, Year 1 Recorded depreciation expense for Year 1.
Sept. 30, Year 2 Undertook routine repairs costing $900.
Dec. 31, Year 2 Recorded depreciation expense for Year 2.
Jan. 1, Year 3 Made an adjustment costing $3,600 to the equipment. It improved the quality of the output but did not affect the life and salvage value estimates.
Dec. 31, Year 3 Recorded depreciation expense for Year 3.
June. 1, Year 4 Incurred $1,950 cost to oil and clean the equipment.
Dec. 31, Year 4 Recorded depreciation expense for Year 4.
Jan. 1, Year 5 Had the equipment completely overhauled at a cost of $11,200. The overhaul was estimated to extend the total life to seven years. The salvage value did not change.
Dec. 31, Year 5 Recorded depreciation expense for Year 5.
Oct. 1, Year 6

Received and accepted an offer of $30,000 for the equipment.

Required: Prepare the journal entry for the disposal of the equipment on October 1, Year 6.

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