Prepare journal entries to record the above disposals.

Problem 72. Higher Company had the following disposals of production equipment during 2006: Equipment Purchase Original Date of Disposal Useful Cost Disposal Proceeds ID Number Date Life Depreciation Method 301 415 573 2/28/98 $70,300 10/03/02 $14,300 7/03/05 96,000 7/19/02 63,000 6/15/04 94,500 3/21/02 38,000 I O Straight-line 5 150% declining-balance 6 Sum-of-the-years'-digits Higher's policy is to charge a full year's depreciation in the year of purchase if an asset is purchased before July 1. For assets purchased after July I, only one-half year's depreciation is charged. During the year of disposal, one-half year's depreciation is charged if the asset is sold after June 30. No depreciation is charged during the year of disposal if the asset is sold before July I. In all three cases above, estimated residual value at the time of acquisi- tion was zero. Required Prepare journal entries to record the above disposals. Problem 72. Higher Company had the following disposals of production equipment during 2006: Equipment Purchase Original Date of Disposal Useful Cost Disposal Proceeds ID Number Date Life Depreciation Method 301 415 573 2/28/98 $70,300 10/03/02 $14,300 7/03/05 96,000 7/19/02 63,000 6/15/04 94,500 3/21/02 38,000 I O Straight-line 5 150% declining-balance 6 Sum-of-the-years'-digits Higher's policy is to charge a full year's depreciation in the year of purchase if an asset is purchased before July 1. For assets purchased after July I, only one-half year's depreciation is charged. During the year of disposal, one-half year's depreciation is charged if the asset is sold after June 30. No depreciation is charged during the year of disposal if the asset is sold before July I. In all three cases above, estimated residual value at the time of acquisi- tion was zero. Required Prepare journal entries to record the above disposals.