Maxine Company sells a tractor on January 1, 2024 for $45,000 cash. At the time of the sale, the book value of the tractor is$41,000. The original purchase price of the machine was $50,000. Which of the following would be part of the correct journalentry to record the sale of the tractor?DEBIT to Gain on Sale of Equipment of $4,000CREDIT to Equipment of $41,000CREDIT to Gain on Sale of Equipment of $4,000DEBIT to Loss on Sale of Equipment of $5,000None of the above

Accumulated depreciation = Cost - Book value. If the sale value is more than the book value, then…

Answered: Maxine Company sells a tractor on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method. Required: Prepare the depreciation and closing transfer entries in the general journal of Hybrid Dealers on 31 March 2019 and 31 March 2020. Please see attached for answer format
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