Required information

M$9-10($Algo$)$ Reporting and Recording the Disposal of a Long$-$Lived Asset $($Straight$-$Line Depreciation$)$

$[$LO $9-5]$

$[$The following information applies to the questions displayed below.$]$

As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Incorporated, sold shelving units

$($recorded as Equipment$)$ that were $10$ years old for $$1,100$ cash. The shelves originally cost $$7,600$ and had been

depreciated on a straight$-$line basis over an estimated useful life of $10$ years with an estimated residual value of $$600.$

M$9-10($Algo$)$ Part $1$

Required:

Complete the accounting equation below, indicating the account, amount, and the effect of disposal. Assume that depreciation has

been recorded to the date of sale. $($Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign. Do not

round intermediate calculations.$)$