TTC Corporation purchased equipment on January 1 at a cost of $75,000. When purchased, the equigment years
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Question:
TTC Corporation purchased equipment on January 1 at a cost of $75,000. When purchased, the equigment years and a residual value of $15,000. Assuming TTC utilized the straight-line method of depreciation correct journal entry to record the sale of the equipment at the end of Year 2 for $50,000?
O a.
Cash
50,000
Loss on sale of equipment
55,000
Accumulated depreciation - equipment
Equipment
30,000
75,000
O b.
Cash
Accumulated depreciation - equipment
Gain on sale of equipment
Equipment
50,000
24,000
1,000
О с.
Cash
Accumulated depreciation - equipment
50,000
30,000
Gain on sale of equipment
5,000
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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