Question: McKain Inc closes its books on October 31 and prepares
McKain, Inc., closes its books on October 31 and prepares depreciation adjustments annually. On July 27, 2010, McKain sold some equipment with an original cost of $ 36,250 for $ 18,500. The equipment was purchased on November 4, 2005, and was depreciated using the straight-line method and had an estimated useful life of eight years and a salvage value of $ 1,650. Prepare the entries to update the depreciation and record the sale of the equipment.
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