Question - ABC Company has office furniture that cost $40,000, an estimated life of 10 years and a $4,000 salvage value. As of January 1, 2011, accumulated depreciation on the furniture amounts to $30,600. The straight line depreciation method is used. On April 1, 2011, ABC sold the furniture for $9,000.
a) April 1, 2011 - entry to record depreciation for current year:
b) Calculate the gain or loss
c) Journalize the entry to record the sale.