On January 1, 2019, Voss Company purchased equipment for $86,000. Voss uses straight-line depreciation and estimates an eight-year useful life and a $6,000 salvage value. On December 31, 2023, Voss sells the equipment for $30,000. In recording this sale, Voss should reflect:

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The equipment's cost is $86,000 with a salvage value of $6,000, resulting in a depreciable base of $80,000. Over an 8-year life, annual depreciation is $10,000. By the end of 2023 (5 years), accumulated depreciation is $50,000, making the book value $36,000 ($86,000 - $50,000). Selling for $30,000 results in a $6,000 loss ($36,000 - $30,000).

On January 1, 2019, Voss Company Purchased Equipment for $86,000