Ferguson Industries had a piece of equipment that cost $49,000 and had accumulated depreciation of $45,000.

Requirement

1. Record the disposition of the equipment assuming the following independent situations:

a. Ferguson discarded the equipment receiving $0.

b. Ferguson sold the equipment for $6,000 cash.

c. Ferguson traded the equipment in on a new piece of equipment costing $55,000. Ferguson was granted a $5,500 trade-in allowance for the old equipment and paid the difference in cash.

d. Ferguson traded the equipment in on a new piece of equipment costing $43,000. Ferguson was granted a $1,500 trade-in allowance for the old equipment and signed a note payable for the difference?