Market Value of Assets Assignment
3. Counselors of
CartersvilleCartersville
purchased equipment on
January January
1,
20172017,
for
$ 46 comma 000$46,000.
Counselors of
CartersvilleCartersville
expected the equipment to last for
six-six
years and have a residual value of
$ 1 comma 000$1,000.
Suppose Counselors of
CartersvilleCartersville
sold the equipment for
$ 34 comma 500$34,500
on
December 31 comma 2018 comma December 31, 2018,
after using the equipment for
twotwo
full years. Assume depreciation for
20182018
has been recorded. Journalize the sale of the equipment, assuming straight-line depreciation was used.
First, calculate any gain or loss on the disposal of the equipment.
| The market value of assets received | ||
| Less: Book value of asset disposed of | ||
| Cost | ||
| Less: Accumulated Depreciation | ||
| Gain or (Loss) |
Now, journalize the sale of the equipment. (Record debitsfirst, then credits. Select the explanation on the last line of the journal entry table.) .
