The entry to record the sale of equipment costing $40,000,with accumulated depreciation of $34,000 and sale price of $7,700,will include

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The sale price of the equipment is $7,700, which is higher than its book value (cost minus accumulated depreciation) of $6,000 ($40,000 - $34,000). Therefore, a gain on sale of equipment is realized. The amount of gain is calculated as the difference between the sale price and the book value, which is $1,700 ($7,700 - $6,000). Therefore, the entry to record the sale would debit Cash for $7,700, credit Equipment for $40,000, credit Accumulated Depreciation for $34,000, and credit Gain on Sale of Equipment for $1,700.

The Entry to Record the Sale of Equipment Costing $40,000,with