Abbott landscaping purchased a tractor at a cost of $40,000 and sold it three years later for $20,300. abbott recorded depreciation using the straight-line method, a five-year service life, and a $2,500 residual value. tractors are included in the equipment account. assume the tractor was sold for $12,700 instead of $20,300. record the sale. (if no entry is required for a particular transaction/event, select "no journal entry required" in the first account field.)

The Journal entries are as follows:

(i) Sale of Equipment

Cash A/c                                       Dr. $20,300

Accumulated Depreciation A/c   Dr. $22,500

To Equipment                                                      $40,000

To Gain                                                                 $2,800

(To record the sale of equipment)

(ii) Sale of Equipment

Cash A/c                                       Dr. $12,700

Accumulated Depreciation A/c   Dr. $22,500

Loss A/c                                         Dr. $4,800

To Equipment                                                      $40,000

(To record the sale of equipment)

Workings:

Accumulated Depreciation = [(40,000 - 2,500) ÷ 5] × 3 years

                                             = 7,500 × 3 years

                                             = $22,500

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"