Abbott Landscaping purchased a tractor at a cost of $42,000 and sole it three years later for $21,600. Abbott recorded depreciation using the straight-line method a five-year service life, and a $3.000 resIdual value. Tractors are included in the Equipment account.
Required
1. Record the sale.
2. Assume the tractor was sold for $13,600 instead of $21,600. Record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)