Assume that Gonzalez Company purchased an asset on January 1, 2006, for $60,000. The asset had an estimated life of six years and an estimated residual value of $6,000. The company used the straight-line method to depreciate the asset. On July 1, 2008, the asset was sold for $40,000cash.
2. How should the gain or loss on the sale of the asset be present on the income statement?© BrainMass Inc. brainmass.com April 1, 2020, 3:52 pm ad1c9bdddf
1. Make the journal entry to record depreciation for 2008. Also record all transaction necessary for the sale of the asset.
The depreciation per year is (60,000-6,000)/6 = 9,000
The depreciation for 2008 will be for 6 months = 9,000/2 = 4,500. The ...
The solution explains the calculations relating to asset disposal