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"]

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