Balmoral Limited purchased equipment on January 1, 2013, for $170,000 on account. At that time, the equipment was estimated to have a useful life of five years and a $2,000 residual value. The equipment was disposed of on June 1, 2015, when the company relocated to new premises. Balmoral uses the diminishing-balance method at one time the straight-line depreciation rate, has a September 30 year end, and make adjusting entries annually.

Instructions

(a) Record the acquisition of the equipment on January 1, 2013.

(b) Record the depreciation at September 30, 2013 and 2014.

(c) Record the disposal of the equipment on June 2, 2015, under each of the following independent assumptions:

1. It was sold for $105,000.

2. It was sold for $80,000.

3. It was retired for no proceeds.