Prepare journal entry to record the disposal of equipment

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Reference no: EM131204215

On January 1, 2017, ABC Co. sold equipment for $16,000 cash that had cost $35,000, a salvage value of $5,000, and a useful life 10 years. The double-declining-balance depreciation method was used. On December 31, 2016, accumulated depreciation was $20,600. Prepare a journal entry to record the disposal of the equipment. Hint: Your journal entry below should include a gain on disposal of $1,600.

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Reference no: EM131204215

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