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Disposal of Fixed Asset Perfect Auto Rentals sold one of its cars on January 1. Perfect had acquired the car 2 years earlier for $13,500. At acqulsition, Perfect assumed that the car would have an estimated life of 3 years and a residual value of $3,000. Assure that perfect had properly used the straight-line deprecation method in previous years Required: Prepare the journal entry to record the sale of the car assurning the car sold for (a) $6,500 cash, (b) $4,000 cash, and (c) $6,900 cash. The company recorded the car as equipment. If an amount box does not require an entry, leave it blank. a. Cash 6,500 Accumulated Depreciation Equipment 7.000 13.500 b. Cash 4.000 7.000 Accumulated Depreciation Loss on Disposal of Property, Plant and Equipment Equipment 2.500 13.500 6.900 C Cash Accumulated Depreciation Gain on Disposal of Property, Plant, and Equipment Equipment 7.000 400 13.500