Equipment Was Purchased for $24,000

question 136

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. Calculate gain or loss on sale if the equipment is sold for $18,000 at the end of the first year. Give journal entry to record the sale of equipment at book value.

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Definitions:

Behavioural Tolerance

The phenomenon where increased exposure to a certain behavior reduces the response to that behavior over time, often seen with drug and alcohol use.

Consistent Notion

A concept or idea that remains uniform or unchanged across different contexts or over time.

Negative Reinforcement

A behavioral principle where the removal of an unfavorable event or condition strengthens a behavior or increases its likelihood of being repeated.