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Reporting and Analyzing Long-Lived Assets E8-7 Thieu Co has delivery equipment that cost $50,000 and has been depreciated $24,000 How would you record the disposal under the following assumptions? Instructions: Record disposal of equipment (a) It was scrapped as having no value Assets = Liabilities - Stockholders Equity (b) It was sold for $37.000 Assets = Liabilities + Stockholders Equity (c)It was sold for $20,000 Assets = Liabilities + Stockholders Equity E8.9 The following is a tabular summary relating to equipment that was purchased for cash by a company on the first day of the current year. The equipment was depreciated on a straight-line basis with an estimated useful life of 10 years and a salvage value of $100. Part of the equipment was sold on the last day of the current year for cash proceeds. Assets Liabilities Stockholders' Equity Retained Earnings Cash + AVD - Equip Common Stock Equipment +$ 1.100 Rev Exp . ON Jan 1 (a) ( Dec 31 (b) Dec 31 -$100 +40 +$450 -440 (c) Instructions: Use the information in the tabular summary to derive the missing amounts: a) Purchase of equipment on January 1. What was the cash paid? b) Depreciation recorded on December 31. What was the depreciation expense? c) Sale of part of the equipment on December 31. What was the gain on disposal? Page 3 of 3