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    Journal entry

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    PROBLEM # 2 LTB4-2:

    The Overly Complex Company uses the composite method of depreciation on the following assets:

    Asset A Asset B Asset C Asset D Asset E

    Original Cost $56,700 $46,900 $50,400 $26,600 $32,900
    Life (years) 5 6 7 8 9
    Salvage Value $7,700 $6,700 $5,000 $2,100 $3,500

    Asset B was sold for $22,000 cash after being used for 4 years.


    Prepare the journal entry to record depreciation expense for the year.

    Prepare the journal entry to record the sale of Asset B.

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    Solution Summary

    The solution explains the journal entry for depreciation and sale of asset.