You bought equipment for $10,000 and fully depreciated this equipment. You sell the equipment for $4,000...
You bought equipment for $10,000 and fully depreciated this
equipment. You sell the equipment for $4,000 this year.
What happens?
Assume instead that the equipment is sold for $12,000.
What happens?
Homework Answers
Ans:
Equipment cost = $10,000
Accumulated depreciation = $10,000
1) Equipment sold for $4,000
Entry:
Cash......................................... Dr $4,000
Accumulated depreciation.......Dr $10,000
To Gain from sale of equipment $4,000
To equipment $10,000
( Gain from sale of equipment happens)
2) Equipment sold for $12,000
Gain from sale of equipment = $12,000 happens
And record the transactions.
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