Problem on sales of depreciable equipment. Note any time some depreciable asset is sold, the entry to record the sale will have the following pieces:

Debit the cash or other assets received in the sale

Debit the accumulated depreciation account related to the asset, to zero it out

Credit the equipment (or building, or other fixed asset) account for the full original cost of the asset, to zero it out

If there is a gain on sale, credit it. If there is a loss on sale, debit it.

Make entries for the following two transactions:

1. Sell a machine with an original cost of $10,000, and accumulated depreciation of $8,000, for cash of $3,000.
2. Sell a building with an original cost of $10 million, and accumulated depreciation of $2 million, for $5,500,000 in cash.