Question: Reporting and Recording the Disposal of a Long-Lived Asset through Sale (Straight Line Depreciation) As part of a major renovation at the beginning of the year, Hauser Pharmaceuticals, Inc., sold shelving units (store fixtures) that were 10 years old for $1,000 cash. The shelves originally cost $6,400 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $400. Assuming that depreciation has already been recorded to the date of sale, prepare the journal entry to record the sale of the shelving units and show the effects of the disposal on the accounting equation.