On January 3, 2014, Ruiz Company retires equipment, which cost $25,700. No residual value is received. Prepare

Question:

On January 3, 2014, Ruiz Company retires equipment, which cost $25,700. No residual value is received. Prepare journal entries to record the transaction if
(a) Accumulated depreciation is also $25,700 on this equipment,
(b) The accumulated depreciation is $22,500 instead of $25,700. Ruiz has a December 31 fiscal year end.