On March 1, 2018, Simran Company bought a new piece of equipment for $500,000 with a salvage
Question:
On March 1, 2018, Simran Company bought a new piece of equipment for $500,000 with a salvage value of $80,000 and a useful life of 7 years.
On December 31, 2019, Simran Company changes direction of the company and sells the equipment for $300,000.
What are the impacts to Simran Company's accounting equation for the sale of this equipment?
(Depreciation has already been updated prior to the sale and uses the straight-line method. Only record the impact from the sale journal entry below.)
If it increases put a + followed by the amount. If it decreases put a - followed by the amount. If there is no impact put +0. For example, if assets go up by $100 then put +100. No dollar signs or spaces!
Intermediate Accounting
ISBN: 978-1119048534
11th Canadian edition Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy