Phill Co. has delivery equipment that cost $54,000, a salvage value of $4000, and a five year life. The asset was purchased on January 1, 2006 and for disposed on January 1, 2008. Phill Co. uses the straight-line method of depreciation.
Instructions
Record journal entries for the disposal under the following assumptions.
a. It was scrapped as having no value.
b. It was sold for $37,000.
c. It was sold for $18,000
