On January 2, 2016, Pet Spa purchased fixtures for 537800 cash, expecting the fixtures to remain in service for six years. Pet Spa has depreciated the fixtures on a straight-line basis, with 59,000 residual value. On May 31, 2018, Pet Spa sold the fixtures for 524,200 cash. Record both depreciation expense for 2018 and sale of the fixtures on May 31, 2018.
Depreciation is allocation of the cost of capital assets used in operations over the number of years of the assets' useful life. By way of depreciation, the cost of capital assets used in operations is charged against the revenue generated by the assets over their useful lives on an appropriate basis.

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