Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025? OA. Equipment 37,000 Accumulated Depreciation Equipment 13,600 Gain on Disposal Cash 8,600 42,000 OB. Cash 42,000 Accumulated Depreciation Equipment - 14,800 Gain on Disposal Equipment 19,800 37,000 OC. Cash 42,000 Accumulated Depreciation Equipment - 3,000 Gain on Disposal Equipment 8,000 37,000 OD. Equipment 42,000 Accumulated Depreciation Equipment - 10,200 Gain on Disposal 15,200 Cash 37,000
Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025? OA. Equipment 37,000 Accumulated Depreciation Equipment 13,600 Gain on Disposal Cash 8,600 42,000 OB. Cash 42,000 Accumulated Depreciation Equipment - 14,800 Gain on Disposal Equipment 19,800 37,000 OC. Cash 42,000 Accumulated Depreciation Equipment - 3,000 Gain on Disposal Equipment 8,000 37,000 OD. Equipment 42,000 Accumulated Depreciation Equipment - 10,200 Gain on Disposal 15,200 Cash 37,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 3MCQ: When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash...
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Question
![Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of
depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025?
OA. Equipment
37,000
Accumulated Depreciation Equipment
13,600
Gain on Disposal
Cash
8,600
42,000
OB. Cash
42,000
Accumulated Depreciation Equipment
-
14,800
Gain on Disposal
Equipment
19,800
37,000
OC. Cash
42,000
Accumulated Depreciation Equipment
-
3,000
Gain on Disposal
Equipment
8,000
37,000
OD. Equipment
42,000
Accumulated Depreciation Equipment
-
10,200
Gain on Disposal
15,200
Cash
37,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F28f06bb0-bdf7-404b-a6aa-3e1788612231%2Fdce751ca-afa7-410a-a9da-01582b45fd1a%2Fyhyd2u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of
depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025?
OA. Equipment
37,000
Accumulated Depreciation Equipment
13,600
Gain on Disposal
Cash
8,600
42,000
OB. Cash
42,000
Accumulated Depreciation Equipment
-
14,800
Gain on Disposal
Equipment
19,800
37,000
OC. Cash
42,000
Accumulated Depreciation Equipment
-
3,000
Gain on Disposal
Equipment
8,000
37,000
OD. Equipment
42,000
Accumulated Depreciation Equipment
-
10,200
Gain on Disposal
15,200
Cash
37,000
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