ASB Ceramics purchased equipment used in the business three years ago for $32,000. The accumulated depreciation account related to the equipment asset account had a balance of $15,000. The equipment had an estimated salvage (residual)value of $2,000 and had an estimated life of six years. A full year's depreciation was taken the first year. ASB uses the straight-line depreciation method. All depreciation is usually recorded at year-end. The company sold the equipment in exchange for a promissory note on July 1 of the fourth year for $13,000. Record the appropriate entries necessary.

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The Answer of ASB Ceramics purchased equipment used in the business three years ago for $32,000. The accumulated depreciation account related to the equipment asset account had a balance of $15,000. The equipment had an estimated salvage (residual)value of $2,000 and had an estimated life of six years. A full year's depreciation was taken the first year. ASB uses the straight-line depreciation method. All depreciation is usually recorded at year-end. The company sold the equipment in exchange for a promissory note on July 1 of the fourth year for $13,000. Record the appropriate entries necessary.

ASB Ceramics Purchased Equipment Used in the Business Three Years