On September 30, 20x3, Sam Company sold office equipment for $12,000. The equipment was purchased on March 31, 20x0, for $24,000. The asset was being depreciated over a five-year life using the straight-line method, with depreciation based on months in service. No residual value was anticipated.

Required: Prepare the journal entries to record 20x3 depreciation and the sale of the equipment. 1) Depreciation

2) Sale

2,

. Pine Corporation exchanged land and cash of $6,500 for equipment. The land had a book value of $45,000 and a fair value of $34,000. Assume the exchange has no commercial substance.

Prepare the journal entry to record the exchange.

3. On August 1, Golden Company exchanged a machine for a similar machine owned by Colt Company and also received $7,000 cash from Colt Company. Golden's machine had an original cost of $80,000, accumulated depreciation to date of $14,500, and a fair market value of $60,000. Colts machine had an original cost of $95,000 and a book value of $45,000 and a fair value of $53,000.

Required:

1) Prepare the necessary journal entry by Golden Company to record this transaction, assuming the exchange has

A) Commercial Substance

B) No Commercial Substance

2) Prepare the necessary journal entry by Colt Company to record this transaction, assuming the exchange has

A) Commercial Substance

B) No Commercial Substance