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Prepare the journal entry to record sale of the equipment

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Question - During the year ended December 31, 2021, management of Alpha Corporation (the Company) decided to sell a piece of its idle equipment. The equipment had an original tax cost of $75,000 and as of December 31, 2020, tax depreciation of $75,000 had been taken on the equipment. The equipment was sold to an unrelated party for $95,000 cash on June 15, 2021. For the purpose of requirement 3, assume that the book cost and book depreciation have been the same as the tax cost and tax depreciation. Prepare the journal entry to record sale of the equipment.

Reference no: EM133117290

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