Required information Problem 7-8A (Algo) Record the disposal of equipment (LO7-6) Skip to question [The following information applies to the questions displayed below.] New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $660,000. The ovens originally cost $866,000, had an estimated service life of 10 years, had an estimated residual value of $56,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery.

Problem 7-8A (Algo) Part 1 Required: 1. Calculate the balance in the accumulated depreciation account at the end of the second year.

*accumulated depreciation = $