Venkat Engineering decided to dispose of his old industrial evaporator and upgrade to a new model. He had purchased the old evaporator on January 1,2008 for $14,200. There was no salvage/residual value and the useful life Venkat had used was 5 years. Venkat depreciated his machinery using a Straight Line basis.
Venkat sold the equipment on December 31, 2011 to Tavon for $1725.
a) Calculate the Book Value at time of sale
$
b) Calculate Venkat's gain or loss on this sale? Enter a loss as a negative value.
$
c) Journalize this sale on Venkat's books on June 30, 2013.
| Date | Description | Debit | Credit |
|---|---|---|---|
| June 30 | |||
| June 30 | |||
| June 30 | |||
| June 30 |