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Selected transactions of the Harrel Company are listed below. The company uses the straight-line method of depreciation.

2019
Jan.	5		Purchased office equipment at a price of $6,000 FOB. The freight charge was $108; the installation charge was $300.
April	1		Sold warehouse equipment for $4,000 in cash. The equipment was purchased on January 3, 2016, for $24,000. The equipment has a useful life of five years and a salvage value of $2,000. Depreciation was last recorded on December 31, 2018.
July	1		Sold office equipment for $3,100 in cash. The equipment was purchased on July 3, 2016, for $3,500. The equipment has a useful life of five years and a salvage value of $600. Depreciation was last recorded on December 31, 2018.
2020
Jan.	2		Traded in office equipment for new equipment that is similar. The list price of the new office equipment is $21,000. Paid $19,000 cash and received a trade-in allowance of $2,000 for the old equipment. The old equipment had been purchased on January 3, 2016, for $19,000. The old equipment had an estimated useful life of four years and a salvage value of $1,000. Depreciation on the old equipment was last recorded on December 31, 2019. (Use the income tax method to record the trade-in.)
Jan.	4		Traded in warehouse equipment for new equipment that is similar. The list price of the new warehouse equipment is $32,000. Paid $31,000 cash and received a trade-in allowance of $1,000 for the old equipment. The old equipment had been purchased on January 4, 2016, for $30,000. The old equipment had an estimated useful life of four years and a salvage value of $2,000. Depreciation on the old equipment was last recorded on December 31, 2020. (Use the fair market value method to record the trade-in.)

• Record purchase of office equipment.
• Record depreciation for warehouse equipment.
• Record sale of warehouse equipment.
• Record depreciation for office equipment.
• Record sale of office equipment.
• Record trade-in old office equipment for new office equipment.
• Record trade-in old warehouse equipment for new warehouse equipment.

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