Homework Answers
Annual depreciation expense = $11,000
Equipment was purchased on January 1, 2020 and was sold on July 1, 2023. Thus, it was used for 3.5 years.
Accumulated depreciation for 3.5 year = Annual depreciation x 3.5
= 11,000 x 3.5
= $38,500
When recording the sale, the company should record a debit accumulated depreciation - Equipment = $38,500
Correct option is (B)
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