Lynn Company owns equipment that cost $120,000 when purchased on January 1, 2015. It has been depreciated using the straight-line method based on estimated salvage value of $15,000 and an estimated useful life of 5 years.
Instructions
Prepare Lynn Company's journal entries to record the sale of the equipment in these four independent situations.
(a) Sold for $58,000 on January 1, 2018.
(b) Sold for $58,000 on May 1, 2018.
(c) Sold for $32,000 on January 1, 2018.
(d) Sold for $32,000 on October 1, 2018.

Question

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The Answer of Lynn Company owns equipment that cost $120,000 when purchased on January 1, 2015. It has been depreciated using the straight-line method based on estimated salvage value of $15,000 and an estimated useful life of 5 years.
Instructions
Prepare Lynn Company's journal entries to record the sale of the equipment in these four independent situations.
(a) Sold for $58,000 on January 1, 2018.
(b) Sold for $58,000 on May 1, 2018.
(c) Sold for $32,000 on January 1, 2018.
(d) Sold for $32,000 on October 1, 2018.

Lynn Company Owns Equipment That Cost $120,000 When Purchased on January