On January 1, 2014, Window Company purchased an equipment for $35,000. The equipment has an estimated useful life of 7 years. On December 31, 2018, the company retires the equipment due to its bad operating conditions. The company uses the straight line method of depreciation and prepares its financial statements yearly on December 31.

1)The accumulated depreciation of the equipment on the date of disposal is: * $25,000 $30,000 $35,000 $40,000 None of the above

2)The entry to record the retirement on December 31, 2018, will be: * Debit Accumulated Depreciation, Credit Equipment Credit Accumulated Depreciation, Debit Equipment Debit Equipment, Debit Loss on Disposal, Credit Accumulated Depreciation Debit Accumulated Depreciation, Debit Loss on Disposal, Credit Equipment None of the above

3)The book value of the equipment on December 31, 2018 is: * $20,000 $10,000 $35,000 $30,000 None of the above 4)Assuming the equipment was retired on December 31, 2020, the entry recorded will be: * Debit Accumulated Depreciation, Credit Equipment Credit Accumulated Depreciation, Debit Equipment Debit Equipment, Debit Loss on Disposal, Credit Accumulated Depreciation Debit Accumulated Depreciation, Debit Loss on Disposal, Credit Equipment None of the above