Abbott Landscaping purchased a tractor at a cost of $28,000 and sold it three years later for

Question:

Abbott Landscaping purchased a tractor at a cost of $28,000 and sold it three years later for $15,000. 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.

Required:

1. Record the sale.

2. Assume the tractor was sold for $11,000 instead of $16,000. Record the sale.