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Question
Marks Consulting purchased equipment costing $45,000 on January 1, Year 1. The equipment is estimated to have a salvage value of $5,000 and an estimated useful life of 8 years. Straight-line depreciation is used. If the equipment is sold on July 1, Year 5 for $20,000, the journal entry to record the sale will include a:A.Credit to cash for $20,000.
B.Debit to accumulated depreciation for $22,500.
C.Debit to loss on sale for $10,000.
D.Credit to loss on sale for $10,000.
E.Debit to gain on sale for $2,500.
Answer
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