Abbott Landscaping purchased a tractor at a cost of $36,000 and sold it three years later for $18,000. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $2,000 residual value. Tractors are included in the Equipment account. 1- Record the sale of equipment.
2- Assume the tractor was sold for $11,200 instead of $18,000. Record the sale.

1.   Record sale of equipment for $18,000

 Date   Account Title and Explanation       Debit        Credit

           Cash                                                   $18,000

           Accumulated Depreciation              $20,400

                     Equipment                                                  $36,000

                      Gain on sale of Equipment                       $2,400

            (To record sale of equipment)

Workings

Accumulated depreciation = (Cost - Residual Value/ Useful life ) * Number of years used

= ($36,000 - $2,000 / 5) * 3

= $20,400

2. Record sale of Equipment for $11,200

Date   Account Title and Explanation      Debit       Credit

           Cash                                                $11,200

           Accumulated Depreciation           $20,400

           Gain on sale of Equipment            $4,400

                       Equipment                                          $36,000

            (To record sale of equipment)

answer; /// i do believe the correct answer is (possession utility);