The Gemini Group sold one of its plant assets on August 1 of the current year for $ 200,000. The asset had an original cost of $ 500,000 and an estimated residual value of $ 80,000. The firm used the straight- line method of depreciation assuming an estimated useful life of eight years. The asset was in service for five years as of January 1 of the current year.
Required
a. Prepare the journal entry required to record the depreciation for the current year.
b. Prepare the journal entry required to record the sale of the asset.