Equipment acquired at a cost of $126,000 has a book value of $42,000. Journalize the disposal of

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Question:

Equipment acquired at a cost of $126,000 has a book value of $42,000.

Journalize the disposal of the equipment under the following independent assumptions.

a. The equipment had no market value and was discarded.
b. The equipment is sold for $54,000.
c. The equipment is sold for $24,000.
d. The equipment is traded-in for a similar asset. The list price of the new equipment is $63,000. The buyer gave no cash in the exchange. The transaction lacks commercial substance.

A. prepares the journal entries necessary for recording the purchase of the new carpet.
B. record the Dec. 31 adjusting entry for the partial-year depreciation expense for the carpet assuming that champion company uses the straight-line method