question archive Abbott Landscaping purchased a tractor at a cost of $32,000 and sold it three years later for $16,000
Abbott Landscaping purchased a tractor at a cost of $32,000 and sold it three years later for $16,000
Subject:FinancePrice: Bought3
Abbott Landscaping purchased a tractor at a cost of $32,000 and sold it three years later for $16,000. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $2,000 residual value. Tractors are included in the Equipment account.
Required:
1. Record the sale.
2. Assume the tractor was sold for $10,000 instead of $16,000. Record the sale.
