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Assume that Gonzalez Company purchased an asset on January 1, 2008, for $60,000. The asset had an estimated life of six years and an estimated residual value of $6,000. The company used the straight-line method to depreciate the asset. On July 1, 2010, the asset was sold for $40,000.
Required: Hide 1. Make the journal entry to record depreciation for 2010. Record all transactions necessary for the sale of the asset. Journal entry to record depreciation on July 1.
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