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MST Company purchases a new piece of equipment on Jan 1, 2020. The equipment was purchased for cash of $75,000. The company's accountant expects the
MST Company purchases a new piece of equipment on Jan 1, 2020. The equipment was purchased for cash of $75,000. The company's accountant expects the equipment to be useful for 6 years. At the end of the equipment's life the accountant estimates it can be sold for $14,000. The company will use straight-line depreciation to depreciate this asset.
The company has a December 31 fiscal year end. On Jun 30, 2021, the company sells the equipment for $30,000 cash. Record all journal entries for the life of the asset.
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