Carey Enterprises sold equipment on January 1 2016 for $10000. The equipment had cost $48000. The balance in Accumulated Depreciation at January 1 is $40000. What entry would Carey make to record the sale of the equipment?

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Xandra Alexa Barra · Accepted Answer

Final Answer :  Calculate gain or loss on sale:  Proceeds  $ 10 , 000  Book value  8 , 000 ‾ ( $ 48 , 000 − $ 40 , 000 )  Gain on Disposal of plant Assets  $ 2 , 000 ‾ \begin{array}{lr}	ext { Proceeds }  &  \$ 10,000 \	ext { Book value }  &  \underline{8,000} & (\$ 48,000-\$ 40,000)\	ext { Gain on Disposal of plant Assets } &  \underline{\$ 2,000}\end{array}  Proceeds   Book value   Gain on Disposal of plant Assets  ​ $10 , 000 8 , 000 ​ $2 , 000 ​ ​ ( $48 , 000 − $40 , 000 ) ​ Entry to record sale:  Cash 10 , 000  Accumulated Depreciation-Equipment  40 , 000  Gain on Disposal of plant Assets  2 , 000  Equipment 48 , 000 \begin{array}{lrr}  	ext {  Cash}  & 10,000\ 	ext { Accumulated Depreciation-Equipment }  & 40,000\ 	ext {  Gain on Disposal of plant Assets }  & & 2,000\ 	ext {  Equipment}  & & 48,000\\end{array}  Cash  Accumulated Depreciation-Equipment   Gain on Disposal of plant Assets   Equipment ​ 10 , 000 40 , 000 ​ 2 , 000 48 , 000 ​

Carey Enterprises sold equipment on January 1 2016 for $10000. The equipment had cost $48000. The balance in Accumulated Depreciation at January 1 is $40000. What entry would Carey make to record the sale of the equipment?

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