eBook Asset Disposal Assume that Gonzalez Company purchased an asset on January 1, 2015, for...
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eBook Asset Disposal Assume that Gonzalez Company purchased an asset on January 1, 2015, for $60,000. The asset had an estimated life of six years and an estimated residual value of $6,000. The company used the straight-line method to depreciate the asset. Assume that Gonzalez Company sold the asset on July 1, 2017, and received $15,000 cash and a note for an additional $15,000. Required: 1. Identify and analyze the effect of the transaction for depreciation for 2017. Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Stockholders' Revenues Liabilities +Equity Assets 11:25 10/19/
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