Homework B

Question $5,$ EF$10-22($similar to$)$

Part $3$ of $3$

HW Score: $82\mathrm{.}79\%,33\mathrm{.}12$ of $40$

points

Points: $2\mathrm{.}21$ of $6$

On January $2,2023,$ Snug Clothing Consignments purchased showroom fixtures for $$10,000$ cash, expecting the fixtures to remain in service for five years. Snug has depreciated the fixtures on a double$-$declining$-$balance basis, with zero residual value. On August $31,2024,$ Snug sold the fixtures for $$5,500$ cash. Record both depreciation expense for $2024$ and sale of the fixtures on August $31,2024.($Record debits first, then credits. Select the explanation on the last line of the journal entry table. Note that $2023$ depreciation was recorded and posted in $2023.)$

Before recording the sale of the fixtures, let's calculate any gain or loss on the sale of the fixtures.

Market value of assets received

$$5,500$

Less: Book value of asset disposed of

Cost

Less: Accumulated Depreciation

Gain or $($Loss$)$

$\backslash$table$[[$$$,\backslash$table$[[10,000],[(5,600)$