The entry to record the sale of equipment costing $80,000,with accumulated depreciation of $68,000 and sale price of $17,600,is:

Question

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The sale of equipment results in a gain, which is calculated by subtracting the accumulated depreciation from the sale price. Therefore, the journal entry should include Cash (the amount received from the sale), Accumulated Depreciation (to remove the amount of depreciation on the equipment), Equipment (to remove the equipment from the books), and Gain on Sale of Equipment (to record the amount of gain). The correct entry would be:
Cash 17,600
Accumulated Depreciation- Equipment 68,000
Equipment 80,000
Gain on Sale of Equipment 5,600

The Entry to Record the Sale of Equipment Costing $80,000,with