Tresler Co. owns equipment that cost $92,500, with accumulated depreciation of $54,000. Tresler sells the equipment for

Question:

Tresler Co. owns equipment that cost $92,500, with accumulated depreciation of $54,000. Tresler sells the equipment for cash. Record the sale of the equipment assuming Tresler sells the equipment for.
(1) $42,000 cash.
(2) $38,500 cash.
(3) $31,000 cash.