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 for $14,500. 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 four years later on December 31 to Tavon for $1500.
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 December 31.
| Date | Description | Debit | Credit |
|---|---|---|---|
| June 30 | |||
| June 30 | |||
| June 30 | |||
| June 30 |