On January 1, 2009, Straud Co. sold a piece of equipment with a book value of $29,000 for $24,600…

On January 1, 2009, Straud Co. sold a piece of equipment with a book value of $29,000 for $24,600. The equipment had cost $89,000 when it was purchased. Explain why the following journal entry is incorrect. Cash…………………………………………………… 24,600 Loss on Sale of Equipment……………………. 4,400 Equipment…………………………………………… 29,000

 

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