Question: Company Z sold a half-depreciated asset with an original cost of $40,000 and annual depreciation of $4,000 to T company for $9,000. Company T recognized $1,500 in depreciation expense on the asset and it has been paid for
| Account |
Debit |
Credit |
| Fixed Asset |
|
|
|
$31,000 |
|
|
|
| Depreciation Expense |
|
|
2,500 |
|
| Loss on Sale of Asset |
|
|
|
|
|
? |
| Accumulated Depreciation |
|
|
|
|
|
? |