Allyn Company Purchased Equipment Costing $55,000 on January 1,Year 1

Allyn Company purchased equipment costing $55,000 on January 1,Year 1.The equipment is estimated to have a salvage value of $5,000 and an estimated useful life of 5 years.Double-declining-depreciation is used,and all depreciation has been recorded as of December 31,Year 2.If the equipment is sold on December 31,Year 2 for $15,000,the journal entry to record the sale is:

A) Debit Cash,$15,000; Debit Accumulated Depreciation,$22,000; Debit Loss on Sale,$18,000; Credit Equipment,$55,000.
B) Debit Cash,$15,000; Debit Accumulated Depreciation,$13,200; Debit Loss on Sale,$26,800; Credit Equipment,$55,000.
C) Debit Cash,$15,000; Debit Accumulated Depreciation,$35,200; Debit Loss on Sale,$4,800; Credit Equipment,$55,000.
D) Debit Cash,$15,000; Debit Accumulated Depreciation,$40,000; Credit Equipment,$55,000.
E) Debit Cash,$15,000; Debit Loss on Sale,$40,000; Credit Equipment,$55,000.

Correct Answer:

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