Sale of Equipment

Equipment was acquired at the beginning of the year at a cost of $32,250. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $630.

a. What was the depreciation for the first year? $fill in the blank 6a8ebc01a033016_1

b. Assuming the equipment was sold at the end of year 2 for $7,940, determine the gain or loss on the sale of the equipment. $fill in the blank 6a8ebc01a033016_2

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

		fill in the blank e0565a076f84fea_2	fill in the blank e0565a076f84fea_3
		fill in the blank e0565a076f84fea_5	fill in the blank e0565a076f84fea_6
		fill in the blank e0565a076f84fea_8	fill in the blank e0565a076f84fea_9
		fill in the blank e0565a076f84fea_11	fill in the blank e0565a076f84fea_12

• Accounts Payable
• Accounts Receivable
• Accumulated Depreciation-Equipment
• Depreciation Expense
• Equipment
• Loss on Sale of Equipment