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Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025? OA. Equipment 37,000 Accumulated Depreciation Equipment 13,600 Gain on Disposal Cash 8,600 42,000 OB. Cash 42,000 Accumulated Depreciation Equipment - 14,800 Gain on Disposal Equipment 19,800 37,000 OC. Cash 42,000 Accumulated Depreciation Equipment - 3,000 Gain on Disposal Equipment 8,000 37,000 OD. Equipment 42,000 Accumulated Depreciation Equipment - 10,200 Gain on Disposal 15,200 Cash 37,000

Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025? OA. Equipment 37,000 Accumulated Depreciation Equipment 13,600 Gain on Disposal Cash 8,600 42,000 OB. Cash 42,000 Accumulated Depreciation Equipment - 14,800 Gain on Disposal Equipment 19,800 37,000 OC. Cash 42,000 Accumulated Depreciation Equipment - 3,000 Gain on Disposal Equipment 8,000 37,000 OD. Equipment 42,000 Accumulated Depreciation Equipment - 10,200 Gain on Disposal 15,200 Cash 37,000

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.6E
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Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025? OA. Equipment 37,000 Accumulated Depreciation Equipment 13,600 Gain on Disposal Cash 8,600 42,000 OB. Cash 42,000 Accumulated Depreciation Equipment - 14,800 Gain on Disposal Equipment 19,800 37,000 OC. Cash 42,000 Accumulated Depreciation Equipment - 3,000 Gain on Disposal Equipment 8,000 37,000 OD. Equipment 42,000 Accumulated Depreciation Equipment - 10,200 Gain on Disposal 15,200 Cash 37,000
Transcribed Image Text:Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025? OA. Equipment 37,000 Accumulated Depreciation Equipment 13,600 Gain on Disposal Cash 8,600 42,000 OB. Cash 42,000 Accumulated Depreciation Equipment - 14,800 Gain on Disposal Equipment 19,800 37,000 OC. Cash 42,000 Accumulated Depreciation Equipment - 3,000 Gain on Disposal Equipment 8,000 37,000 OD. Equipment 42,000 Accumulated Depreciation Equipment - 10,200 Gain on Disposal 15,200 Cash 37,000
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