Reference no: EM132858878
Footloose Ltd acquired furniture on 1 July 2019 for $42,000.The estimated useful life of the furniture at acquisition date was 8 years and the residual value was $2,000.The company sold all the furniture on 1 January 2025 for $18,000.
Problem 1: The journal entry(ies) needed to reflect the sale will be:
Select one:
a. DR Cash 18,000 DR Accumulated depreciation 30,000 CR Gain on sale 6,000 CR Furniture 42,000
b. DR Cash 18,000 DR Loss on sale 3,500 CR Furniture 21,500
c. DR Cash 18,000 DR Accumulated depreciation 27,500 CR Gain on sale 3,500 CR Furniture 42,000
d. DR Cash 18,000 CR Proceeds on sale 18,000; DR Carrying amount of furniture 27,500, CR Furniture 27,500
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