On January 1, 2016, a company disposed of equipment for $16,200 cash that had cost $35,000, a salvage value of $5,000, and a useful life 10 years. The double-declining-balance depreciation method was used. On December 31, 2015, accumulated depreciation was $20,664. Prepare a journal entry to record the disposal of the equipment.
What will be an ideal response?
| Jan. 1 | Cash | 16,200 |
| Accumulated Depreciation-Equipment | 20,664 |
| ? | Equipment | 35,000 |
| ? | Gain on Disposal of Equipment | 1,864 |
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