The following information was provided in the 2018 10-K of Hilton Worldwide Holdings, Inc.

Note 7: Property and Equipment (S millions)

Note 7 also revealed that depreciation expense on property and equipment totaled $54 million in 2018. The cash flow statement reported that expenditures for property and equipment totaled $72 million in 2018 and that there was no gain or loss on the sale of property and equipment during the year.

REQUIRED:

Using the information provided, prepare a journal entry to record the sale of property and equipment in 2018. Explain how a gain or loss on the sale would have changed the journal entry you recorded.

Transcribed Image Text:

2018 2017 Property and equipment, gross Accumulated depreciation Property and equipment, net .... $848 $803 (450) (481) .... 367 353