Grey's Inc. decided to dispose of a piece of equipment and upgrade to a new model. They had purchased the old evaporator on January 1, 2012 for $13,600. There was no salvage/residual value and the useful life Grey's used was 6 years. Grey's depreciated the machinery using the Straight Line method.
Grey's sold the equipment on June 30, 2016 to Tavon for $2500.
a) Calculate the Book Value at time of sale.(Do not round the depreciation per year.)
$
b) Calculate Grey's gain or loss on this sale? Enter a loss as a negative value.
$
c) Journalize this sale on Grey's books on June 30, 2016.
| Date | Description | Debit | Credit |
|---|---|---|---|
| June 30 | |||
| June 30 | |||
| June 30 | |||
| June 30 |
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