Novak Company has old equipment that cost $54,000. The equipment has accumulated depreciation of $27,700. Novak has decided to sell the equipment.

(a) What entry would they make to record the sale of the equipment for $36,000 cash? (b) What entry would they make to record the sale of the equipment for $15,000 cash?

Please show how to find the red.

Account Titles and Explanation Debit Credit > (a) Cash 36,000 Accumulated Depreciation-Equipment 27,700 > Equipment 54,000 Gain on Disposal of Plant Assets 8300 (b) Cash 15,000 Accumulated Depreciation-Equipment 27,700 X Loss on Disposal of Plant Assets 12700 Equipment 54,000