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London Corp.Company purchased equipment in 2021 for $100,000 and estimated an $10,000 residual value at the end of the equipment's 10-year useful life. At December 31, 2027, there was $63,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2028, the equipment was sold for $28,500.
Problem a) Prepare the appropriate journal entries to update depreciation and then to remove the equipment from the books of Lui Company on March 31, 2028.
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