On April 1, 2020, Elway Inc purchases a piece of equipment for $55,000. The equipment has a
Question:
On April 1, 2020, Elway Inc purchases a piece of equipment for $55,000. The equipment has a $3,000 salvage value and a useful life of 4 years or 130,000 units of production.
Elway sells the equipment for $8,000. At the time of sale, the equipment has a net book value of $10,000. Prepare the journal entry to record the sale of equipment.
[ Select ] ["CR", "", "DR", ""] Cash [ Select ] ["2,000", "8,000", "45,000", "55,000"]
[dr] Accumulated Depreciation [ Select ] ["8,000", "55,000", "45,000", "2,000"]
[dr] [ Select ] ["Gain on Disposal of Assets", "Loss on Disposal of Assets"] [ Select ] ["45,000", "55,000", "2,000", "8,000"]
[ Select ] ["CR", "DR"] Equipment [ Select ] ["55,000", "8,000", "45,000", "2,000"]
Corporate Finance
ISBN: 9781259270116
8th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss