Marks Consulting purchased equipment costing $45,000 on January 1, Year 1. The equipment is estimated to...

 

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Marks Consulting purchased equipment costing $45,000 on January 1, Year 1. The equipment is estimated to have a salvage value of $5,000 and an estimated useful life of 8 years. Straight-line depreciation is used. If the equipment is sold on January 1, Year 5 for $22,500, the journal entry to record the sale will include a: Multiple Choice 1. Credit to cash for $22,500. 2. Debit to accumulated depreciation for $20,000. 3. Credit to loss on sale for $2,500. 4. Debit to equipment for $45,000. 5. Debit to gain on sale for $2,500 X Marks Consulting purchased equipment costing $45,000 on January 1, Year 1. The equipment is estimated to have a salvage value of $5,000 and an estimated useful life of 8 years. Straight-line depreciation is used. If the equipment is sold on January 1, Year 5 for $22,500, the journal entry to record the sale will include a: Multiple Choice 1. Credit to cash for $22,500. 2. Debit to accumulated depreciation for $20,000. 3. Credit to loss on sale for $2,500. 4. Debit to equipment for $45,000. 5. Debit to gain on sale for $2,500 X

Answer rating: 100% (QA)

A 1 a Straight line depreciation 2 3 4 5 b Accumulated depreciation at the tim... View the full answer