Lue Company sold used equipment for $450,000 cash. The equipment was purchased 5 years ago for a cost of $800,000. It has been depreciated using the straight-line method over an estimated useful life of 10 years with an estimated residual value of $50,000.
Required:
Prepare the journal entry at the end of year five for the asset's disposal assuming the fifth year's depreciation had been recorded.

Question

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The Answer of Lue Company sold used equipment for $450,000 cash. The equipment was purchased 5 years ago for a cost of $800,000. It has been depreciated using the straight-line method over an estimated useful life of 10 years with an estimated residual value of $50,000.
Required:
Prepare the journal entry at the end of year five for the asset's disposal assuming the fifth year's depreciation had been recorded.

Lue Company Sold Used Equipment for $450,000 Cash