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Swift Current Company, who has a year-end date of February 28, 2022, disposed of equipment...

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Accounting

Swift Current Company, who has a year-end date of February 28, 2022, disposed of equipment on May 1, 2021. The asset had a cost of $75,588, an estimated residual value of $11,300, an estimated useful life of 4 years or 6,800 hours, and accumulated depreciation at the start of the fiscal year of disposal of $56,691. In the year of disposal, the company used the equipment for 244 hours. On disposal, they received proceeds of $54,423. There were no changes to any estimates, and the asset was purchased at the start of the fiscal year two years previously.Calculate the gain/loss on disposal of the equipment and provide the journal entry. Answer the following questions about the disposal, calculating all answers to the nearest dollar

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