The following assets are owned by the Dinnell Company:

In the year of acquisition and retirement of an asset, the company records depreciation for one-half year. During 2008, asset A was sold for $7,000.

Required
Prepare the journal entries to record depreciation on each asset for 2005 through 2008 and the sale of assetA.

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Asset Year purchased Cost Expected life Residual value Depreciation method Straight-line Sum-of-the-years-digits Double-declining-balance 2005 $20,000 5 years $2,000 2006 $40,000 8 years 2007 $100,000 10 years $10,000