Sale of Plant Asset

Raine Company has a machine that originally cost $78,000. Depreciation has been recorded for five years using the straight-line method, with a $15,000 estimated salvage value at the end of an expected nine-year life. After recording depreciation at the end of five years, Raine sells the machine. Prepare the journal entry to record the machines sale for (Round to the nearest dollar):

a.	$48,000	cash
b.	$43,000	cash
c.	$30,000	cash

General Journal
Date	Description	Debit	Credit
a.	AnswerAccumulated Depreciation - EquipmentCashEquipmentGain on Sale of Plant AssetsLoss on Sale of Plant AssetsNet Loss	Answer	Answer
	Accumulated Depreciation - Equipment	Answer	Answer
	AnswerAccumulated Depreciation - EquipmentCashEquipmentGain on Sale of Plant AssetsLoss on Sale of Plant AssetsNet Loss	Answer	Answer
	Gain on Sale of Plant Assets	Answer	Answer
	To record sale of machine.
b.	Cash	Answer	Answer
	AnswerAccumulated Depreciation - EquipmentCashEquipmentGain on Sale of Plant AssetsLoss on Sale of Plant AssetsNet Loss	Answer	Answer
	AnswerAccumulated Depreciation - EquipmentCashEquipmentGain on Sale of Plant AssetsLoss on Sale of Plant AssetsNet Loss	Answer	Answer
	To record sale of machine.
c.	Cash	Answer	Answer
	AnswerAccumulated Depreciation - EquipmentCashEquipmentGain on Sale of Plant AssetsLoss on Sale of Plant AssetsNet Loss	Answer	Answer
	Accumulated Depreciation - Equipment	Answer	Answer
	AnswerAccumulated Depreciation - EquipmentCashEquipmentGain on Sale of Plant AssetsLoss on Sale of Plant AssetsNet Loss	Answer	Answer
	To record sale of machine.