Venkat Engineering decided to dispose of his old industrial evaporator and upgrade to a new model. He had purchased the old evaporator on January $1,2019$ for $$12,700.$ There was no salvage$/$residual value and the useful life Venkat had used was $5$ years. Venkat depreciated his machinery using a Straight Line basis.

On December $31,2023,$ Venkat talked Chris into paying him $$450$ for the above referenced equipment.

If you find yourself getting stuck trying to complete this problem here is a link to a video of me solving a very similar problem. $($Ignore any part that refers to My Open Math as these problems are now being done in these Excel spreadsheets.$)$

$6$

$7$

Sale of Fixed $A-$et at the end of Fiscal Year Demo$/$Example $-$ YouTube Video

$8$

a$)$ Calculate the Book Value at the the time of sale:

$10$

$11$

Book Value at the time of sale

$12$

b$)$ Calculate Venkat's gain or loss on the sale: $($Enter a loss as a negative number.$)$

$14$

$15$

Gain or loss on sale of asset

$16$

c$)$ Record the journal entry on Venkat's books to record the sale of the asset.

$18$

$19$

Dec $312023$

Incorrect

$21$

$23$

$25$

cu

$27$

to record the sale of equipment