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Problem
New Deli is in the process of closing its operations. It sold its three-year-old ovens to Sicily Pizza for $287,700. The ovens originally cost $383,500 and had an estimated service life of 10 years and an estimated residual value of $23,500. New Deli uses straight-line depreciation for all equipment.
Required:
1. Calculate the balance in the accumulated depreciation account at the end of the third year.
2. Calculate the book value of the ovens at the end of the third year.
3. What is the gain or loss on the sale of the ovens at the end of the third year?
4. Record the sale of the ovens at the end of the third year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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