Plant equipment originally costing$32,400, on which $21,600 of up-to-date depreciation has beenaccumulated, was sold...Plant...

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Accounting

Plant equipment originally costing$32,400, on which $21,600 of up-to-date depreciation has beenaccumulated, was sold for $8,100.
a. Prepare the journal entry to recordthe sale.
b. Prepare the entry to record the saleof the equipment if $90 of removal costs were incurred to allow theequipment to be moved.

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Working note 1 Calculation of Profit Loss on sale of Asset Cost of Plant Equipment 3240000 Less Accumulated Depreciation 2160000 Book Value of Plant Equipment 1080000 Sale Consideration 810000 Loss on sale 270000 Requirement a See Answer

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In: AccountingPlant equipment originally costing$32,400, on which $21,600 of up-to-date depreciation has beenaccumulated, was sold...Plant equipment originally costing$32,400, on which $21,600 of up-to-date depreciation has beenaccumulated, was sold for $8,100.a. Prepare the journal entry to recordthe sale.b. Prepare the entry to record the saleof the equipment if $90 of removal costs were incurred to allow theequipment to be moved.