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Question
Computer equipment (office equipment) purchased 6½ years ago for $170,000, with an estimated life of 8 years and a residual value of $10,000, is now sold. (Appropriate entries for depreciation had been made for the first 6 years of use.)
a. Journalize the depreciation for the one-half year prior to the sale, using the straight-line method.
b. Journalize the sale of the equipment, assuming it is sold for $60,000 cash.
c. Journalize the sale of the equipment, assuming it is sold for $25,000 cash.
Answer
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