Question: Recording the Disposal of a Long-Lived Asset through Sale Prepare journal entries to record these transactions:
(a) Morrell Corporation disposed of computer equipment at the end of its useful life. The computer equipment had cost $4,800 and its Accumulated Depreciation balance was $4,800. No residual value was received.
(b) Assume the same information as (a) except that Accumulated Depreciation, updated to the date of disposal, was $3,600.