Question - Financial Accounting: Recording the Disposal of a Long-Lived Asset (Straight-Line Depreciation)
As part of a major renovation at the beginning of the year, Bonham's Bakery sold shelving units (store fixtures) for $1,800 cash. The shelving units that were 10 years old, had a original cost of $6,500 with an estimated residual value of $800 and they had been depreciated on a straight-line basis over an estimated useful life of 12 years. Prepare the journal entry to record the sale of the shelving units.