Driscoll Company purchased equipment on January 1, 2010 for $26,000. Driscoll uses straight-line depreciation for the asset, which has a five year estimated useful life and a salvage value estimated at $4,000. The asset was sold on January 1, 2014 for $12,000 cash. Indicate whether each of the following items related to Driscoll Company is true or false.
1. A gain or loss on a sale of equipment is reported on the balance sheet
2. Book value on January 1, 2014 was $21,600
3. On the date of the sale, Driscoll would record a loss of $800
4. Accumulated depreciation on January 1, 2014 was $8,800
5. Annual depreciation for Driscoll's equipment was $5,200

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The Answer of Driscoll Company purchased equipment on January 1, 2010 for $26,000. Driscoll uses straight-line depreciation for the asset, which has a five year estimated useful life and a salvage value estimated at $4,000. The asset was sold on January 1, 2014 for $12,000 cash. Indicate whether each of the following items related to Driscoll Company is true or false.
1. A gain or loss on a sale of equipment is reported on the balance sheet
2. Book value on January 1, 2014 was $21,600
3. On the date of the sale, Driscoll would record a loss of $800
4. Accumulated depreciation on January 1, 2014 was $8,800
5. Annual depreciation for Driscoll's equipment was $5,200

Driscoll Company Purchased Equipment on January 1, 2010 for $26,000