Equipment purchased for $80,000 on January 1, 2015, was sold on July 1, 2018. The company uses the straight-line method of computing depreciation and recognizes $15,000 of depreciation expense annually. When recording the sale, the company should record a debit to Accumulated Depreciation for:

Question

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The equipment was used for 3.5 years (from January 1, 2015, to July 1, 2018). At $15,000 per year, the accumulated depreciation would be $15,000 x 3.5 = $52,500.

Equipment Purchased for $80,000 on January 1, 2015, Was Sold