Question: On June 30, 2017, Adilide, Inc. discarded equipment costing $40,000. Accumulated Depreciation as of December 31, 2016, was $25,000. Assume annual depreciation on the equipment

On June 30, 2017, Adilide, Inc. discarded equipment costing $40,000. Accumulated Depreciation as of December 31, 2016, was $25,000. Assume annual depreciation on the equipment is $2,500. Prepare the journal entries for the 2017 depreciation expense and for the disposal of the equipment.

Depreciation Expense—Equipment
Accumulated Depreciation—Equipment

Accumulated Depreciation**
Loss on Disposal*

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