Prepare the journal entry to record the sale of the asset

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On January 2, Year 1, Cook Company purchased equipment costing $45,600, with an estimated salvage value of $1,850 and an estimated useful life of 7 years. On December 31, Year 5, Cook Company sold the equipment to Used Machine Company for $16,235.

Required:

Problem 1: Prepare the journal entry to record the sale of the asset.

Reference no: EM132864770

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