Acker Limited sold a piece of equipment August 1, 2020 for proceeds of $22,000. The equipment had an original value of $60,000 and was purchased on January 1, 2017. It was estimated to have a residual value of $3,000 and 5-year useful life. Acker uses the straight-line method. Acker has a December 31 year end.
Instructions
Journalize all entries required to update depreciation and record the sale of the asset in 2020.

Question

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The Answer of Acker Limited sold a piece of equipment August 1, 2020 for proceeds of $22,000. The equipment had an original value of $60,000 and was purchased on January 1, 2017. It was estimated to have a residual value of $3,000 and 5-year useful life. Acker uses the straight-line method. Acker has a December 31 year end.
Instructions
Journalize all entries required to update depreciation and record the sale of the asset in 2020.

Acker Limited Sold a Piece of Equipment August 1, 2020