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, 2012 for $16,000. 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.
On December 31, 2016, Venkat talked Chris into paying him $575 for the above referenced equipment.
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, 2016.
| Date | Description | Debit | Credit |
|---|---|---|---|
| Dec 31 | |||
| Dec 31 | |||
| Dec 31 | |||
| Dec 31 |
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