Q1. NC purchased a cement mixer for $ 14500. The mixer is expected to have a useful life of five years and a residual value of $ 1000 at the end of that time. Required: Prepare the journal entries to record the disposal of the mixer at the end of second year, assume the straight line depreciation method was used and that:

a. It was sold for $ 10000 cash

b. It was sold for $ 8000 cash

c. It was traded in on a similar mixer ( new) having a list price of $ 16500, a trade in allowance of $ 8000 was given and the balance was paid in cash.