Caterpillar Corp sold manufacturing equipment for 26000 Cate

Caterpillar Corp sold manufacturing equipment for $26,000. Caterpillar Corp originally purchased the equipment for $90,000, and depreciation through the date of sale totaled $76,000.

Was there a gain or loss? Answer = _______yes____________(1pts)

What was the amount of the gain or loss on the sale of the equipment? Answer = ____$14,000____(2pts)

Prepare the journal entry for the sale of the equipment. (3pts) ?????

Solution

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Purchase Cost of equipment            90,000.00 Accumulated depreciation         (76,000.00) Carrying Value            14,000.00 Sale Value of equipment            26,000.00 Gain on sale of equipment = 26000 - 14000            12,000.00 Debit Credit Accumulated Depreciation - Equipment DR            76,000.00 Cash Dr            26,000.00 To Equipment            90,000.00 To Gain on sale of equipment            12,000.00