Record a sale in journal entry – The depreciation method used wasstraight-line
On January 1,2011, Pizza Notra purchased a van for $45,000. Red Rock expects the van to have a useful life of 5 years and a residual value of $5,500.
The depreciation method used wasstraight-line. On December 31,2014, the van was sold for $15,000 cash.
1. What was the carrying amount of the van at the date of sale?
2. Record the sale of the van on December 31,2014. in journal entry.