On January 1, 2009, Straud Co. sold a piece of equipment with a book value of $29,000

Question:

On January 1, 2009, Straud Co. sold a piece of equipment with a book value of $29,000 for $24,600. The equipment had cost $89,000 when it was purchased. Explain why the following journal entry is incorrect.
Cash............................................................ 24,600
Loss on Sale of Equipment......................... 4,400
Equipment................................................... 29,000