Answer:
Loss on sale of equipment Dr $145,000
Explanation:
The journal entry is shown below:
Cash Dr $105,000
Accumulated depreciation Dr $325,000
Loss on sale of equipment Dr $145,000
To Equipment $575,000
(Being the record of the equipment is recorded)
Since the equipment is sold for $105,000 due to which the cash is increased by $105,000 and there is a decrease in assets for $575,000 as this amount indicates the purchase value
Moreover, the accumulated depreciation is also debited for $325,000
And, the balancing figure would be transferred to loss on sale of equipment i.e $145,000
