Equipment Was Purchased for $24,000

question 98

Essay

Equipment was purchased for $24,000. The equipment's estimated useful life was 5 years, and its residual value was $4,000. The straight-line method of depreciation was used. Give journal entry to record the sale of the equipment if it is sold for $25,000 at the end of the first year.

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Definitions:

Arbitration

A form of alternative dispute resolution where a neutral third party makes a decision on a dispute outside the court system.

Data Packet

A formatted unit of data transmitted over a network, containing control information and user payload, facilitating reliable communication.

Data Bus

A communication system within a computer or between computers designed to transfer data or instructions between components.

Physical Power Line

Electrical lines or cables that transmit electrical power from one location to another.