Carver Company purchased machinery on January 1,2007 at a cost of $200,000. The machinery has an estimated usefullife of five years and a $20,000 residual value. Carver uses thestraight-line depreciation method. On December 31, 2008 Carver soldthe machinery for $80,000. Prepare the December 31, 2008transaction in the accounting system.
Account ASSETS = LIABILITIES + OWNER'S EQUITY