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FoodShopper Company later sold the equipment for $2,000 on December 31, 2020.
Accumulated Depreciation was $25,000 on December 31, 2020.
Journalize the sale of the equipment, assuming straight-line depreciation was used.
Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss)
Date Description Debit Credit December 31 December 31 December 31 December 31 Market value of assets received 2,000 Less: Book value of asset disposed of Cost 32,000 Less: Accumulated Depreciation 25,000 7,000 Gain or (Loss) -5,000 Date Description Debit Credit December 31 Cash 2,000 December 31 Accum. Depr.-Equipment 25,000 December 31 Loss on Sale 5,000 December 31 Equipment 32,000