Prepare journal entries to record the following. (a) Perez Company retires its delivery equipment, which cost $44,000.

Question:

Prepare journal entries to record the following.
(a) Perez Company retires its delivery equipment, which cost $44,000. Accumulated depreciation is also $44,000 on this delivery equipment. No is received.
(b) Assume the same information as (a), except that accumulated depreciation is $39,000, instead of $44,000, on the delivery equipment.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...