3. Counselors of Griffin purchased equipment on January 1, 2023, for $67,000. Counselors of Griffin expected the equipment to last for eight years and have a residual value of $3,000. Suppose Counselors of Griffin sold the equipment for $29,000 on December 31, 2027, after using the equipment for five full years. Assume depreciation for 2027 has been recorded. Journalize the sale of the equipment, assuming straight-line depreciation was used. First, calculate any gain or loss on the disposal of the equipment. Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss) 67000 51200 29000
3. Counselors of Griffin purchased equipment on January 1, 2023, for $67,000. Counselors of Griffin expected the equipment to last for eight years and have a residual value of $3,000. Suppose Counselors of Griffin sold the equipment for $29,000 on December 31, 2027, after using the equipment for five full years. Assume depreciation for 2027 has been recorded. Journalize the sale of the equipment, assuming straight-line depreciation was used. First, calculate any gain or loss on the disposal of the equipment. Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss) 67000 51200 29000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3. Counselors of Griffin purchased equipment on January 1, 2023, for $67,000. Counselors of Griffin expected the equipment to last for eight years and have a residual value of $3,000. Suppose Counselors of Griffin sold the equipment for $29,000 on December 31, 2027, after using the equipment for five
full years. Assume depreciation for 2027 has been recorded. Journalize the sale of the equipment, assuming straight-line depreciation was used.
First, calculate any gain or loss on the disposal of the equipment.
Market value of assets received
Less: Book value of asset disposed of
Cost
Less: Accumulated Depreciation
Gain or (Loss)
67000
51200
29000
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