Question - Pryce Company owns equipment that cost $75,000 when purchased on January 1, 2012. It has been depreciated using the straight-line method based on an estimated salvage value of $5,000 and an estimated useful life of 5 years.
Instructions - Prepare Pryce Company's journal entries to record the sale of the equipment in these four independent situations.
(a) Sold for $30,000 on January 1, 2015.
(b) Sold for $30,000 on May 1, 2015.
(c) Sold for $10,000 on January 1, 2015.
(d) Sold for $10,000 on October 1, 2015.