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Francis Manufacturing owns equipment that cost €50,000 when purchased on January 1, 2017. It has been depreciated using the straight-line method based on an estimated residual value of €8,000 and an estimated useful life of 5 years.
Question 1: Journalize entries for disposal of equipment.
Instructions
Question 2: Prepare Francis's journal entries to record the sale of the equipment in these four independent situations.
a. Sold for €28,000 on January 1, 2020.
b. Sold for €28,000 on May 1, 2020.
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