Question

Asset Disposal Assume that Gonzalez Company purchased an asset on January 1, 2015, for $62,000. The asset had an estimated life of six years and an estimated residual value of $6,200. TI company used the straight-line method to depreciate the asset. On July 1, 2017, the asset was sold for $40,960 Required: 1. Identify and analyze the effect of the transaction for depreciation for 2017 Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry and leave the amount box blank. If the effect on a financial statement item is negative, L., a decrease be sure to enter the answer with a minus sign. Remember if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues

Answer 1

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