Problem e8-14 recording the disposal of an asset at three


Problem E8-14: Recording the Disposal of an Asset at Three Different Sales Prices Marriott International is a worldwide operator and franchisor of hotels and related lodging facilities totaling over $1.4 billion in property and equipment. It also develops, operates, and markets time-share properties totaling nearly $2 billion. Assume that Marriott replaced furniture that had been used in the business for five years. The records of the company reflected the following regarding the sale of the existing furniture: Furniture (cost) $6,000,000 Accumulated Depreciation $5,500,000 Required 1. Give the journal entry for the disposal of the furniture, assuming that it was sold for a. $500,000 cash b. $1,600,000 cash c. $400,000 cash 2. Based on the three preceding situations, explain the effects of the disposal of an asset.

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Accounting Basics: Problem e8-14 recording the disposal of an asset at three
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