Equipment was purchased for $24,000 on January 1, 2016. The equipment's estimated useful life was five years and its residual value was $4000. The straight-line method of depreciation was used. a. Calculate the gain or loss on sale if the equipment is sold for $18,000 on December 31, 2016, the end of the accounting period. b. Prepare the journal entry to record the sale of equipment.

Equipment was purchased for $24,000 on January 1, 2016. The equipment's estimated useful life was five years and its residual value was $4000. The straight-line method of depreciation was used. a. Calculate the gain or loss on sale if the equipment is sold for $18,000 on December 31, 2016, the end of the accounting period. b. Prepare the journal entry to record the sale of equipment.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.6E

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