Sturgis Corporation purchased equipment on January 2, 2013 for $50,000. Sturgis used the straight-line method of depreciation with a $6,000 salvage value and a useful life of 5-years. On January 1, 2015 Sturgis sold this equipment for $35,000.
Required:
a) Calculate the gain or loss Sturgis should recognize from this sale.
b) Prepare the journal entry to record the sale.

Question

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The Answer of Sturgis Corporation purchased equipment on January 2, 2013 for $50,000. Sturgis used the straight-line method of depreciation with a $6,000 salvage value and a useful life of 5-years. On January 1, 2015 Sturgis sold this equipment for $35,000.
Required:
a) Calculate the gain or loss Sturgis should recognize from this sale.
b) Prepare the journal entry to record the sale.

Sturgis Corporation Purchased Equipment on January 2, 2013 for $50,000