Reference no: EM132964982

Vineyard Company sold the following two pieces of equipment in 2017:

                                              Equipment A                           Equipment B

Cost                                   $116,000                       $63,000

Purchase date                       7/1/13                            1/1/14

Useful life                              8 years                        5 years

Salvage value                         $4,000                           $3,000

                  Depreciation method               Straight-line

Date sold          7/1/17                                   9/1/17

Sales price          $49,000                                  $20,000

Instructions

Problem 1: Indicate the accounts required to be increased/decreased to update depreciation and record the sales of the two assets in 2017. The company has recorded depreciation on the equipment through December 31, 2016.