On Jan 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. DR: Cash (8,000, 45, 000, 2,000, 55,000) DR Accumulated Depreciation (45,000, 55,000, 8,000, 2,000) DR (Loss on Disposal of Assets, Gain on Disposal of Assets) ( 2,000, 8,000, 45,000, 55,000) CR Equipment (55,000, 45,000, 2,000, 8,000)

On Jan 1,2020 , Elway Inc purchases a piece of equipment for $55,000. The equipment has a $3,00 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. DR: Cash DR Accumulated Depreciation Equipment