Equipment acquired on January 1,2014,is sold on June 30,2017,for $4,500.The equipment cost $10,000,had an estimated residual value of $3,000,and an estimated useful life of 5 years.The equipment has been amortized using the straight-line method.The journal entry to record the sale of the equipment involves a:

Question

Quizplus · Accepted Answer

The accumulated depreciation is calculated as: ($10,000 - $3,000) / 5 years = $1,400 per year. For 3.5 years, it is $1,400 * 3.5 = $4,900. Therefore, a debit to Accumulated Depreciation for $4,900 is needed.

Equipment Acquired on January 1,2014,is Sold on June 30,2017,for $4,500