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Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025? OA. Equipment 37,000 Accumulated Depreciation Equipment 13,600 Gain on Disposal 8,600 Cash 42,000 OB. Cash 42,000 Accumulated Depreciation Equipment 14,800 Gain on Disposal 19,800 Equipment 37,000 O C. Cash 42,000 Accumulated Depreciation Equipment 3,000 Gain on Disposal Equipment 8,000 37,000 OD. Equipment 42,000 Accumulated Depreciation Equipment 10,200 Gain on Disposal 15,200 Cash 37,000

Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025? OA. Equipment 37,000 Accumulated Depreciation Equipment 13,600 Gain on Disposal 8,600 Cash 42,000 OB. Cash 42,000 Accumulated Depreciation Equipment 14,800 Gain on Disposal 19,800 Equipment 37,000 O C. Cash 42,000 Accumulated Depreciation Equipment 3,000 Gain on Disposal Equipment 8,000 37,000 OD. Equipment 42,000 Accumulated Depreciation Equipment 10,200 Gain on Disposal 15,200 Cash 37,000

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.6E
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Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025? OA. Equipment 37,000 Accumulated Depreciation Equipment 13,600 Gain on Disposal 8,600 Cash 42,000 OB. Cash 42,000 Accumulated Depreciation Equipment 14,800 Gain on Disposal 19,800 Equipment 37,000 O C. Cash 42,000 Accumulated Depreciation Equipment 3,000 Gain on Disposal Equipment 8,000 37,000 OD. Equipment 42,000 Accumulated Depreciation Equipment 10,200 Gain on Disposal 15,200 Cash 37,000
Transcribed Image Text:Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025? OA. Equipment 37,000 Accumulated Depreciation Equipment 13,600 Gain on Disposal 8,600 Cash 42,000 OB. Cash 42,000 Accumulated Depreciation Equipment 14,800 Gain on Disposal 19,800 Equipment 37,000 O C. Cash 42,000 Accumulated Depreciation Equipment 3,000 Gain on Disposal Equipment 8,000 37,000 OD. Equipment 42,000 Accumulated Depreciation Equipment 10,200 Gain on Disposal 15,200 Cash 37,000
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