Goo-Yeong Limited sells equipment on September 30, 2015, for $42,000 cash. The equipment originally cost $144,000 when

Question:

Goo-Yeong Limited sells equipment on September 30, 2015, for $42,000 cash. The equipment originally cost $144,000 when purchased on January 1, 2013. It has an estimated residual value of $4,000 and a useful life of five years. Depreciation was last recorded on December 31, 2014, the company's year end. Prepare the journal entries to

(a) Update depreciation using the straight-line method to September 30, 2015,

(b) Record the sale of the equipment.