Abbott Landscaping purchased a tractor at a cost of $ 42,000 and sold it three years later for $ 21,600. Abbott recorded depreciation using the straight- line method, a five- year service life, and a $ 3,000 residual value. Tractors are included in the Equipment account.
1. Record the sale.
2. Assume the tractor was sold for $ 13,600 instead of $ 21,600. Record the sale.