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Max Company purchased equipment in January 1, 2007 for $300,000 and estimated a $10,000 residual value, 10-year useing the straight-line method of depreciation On December 31, 2011, the equipment was sold for $500,000

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Max Company purchased equipment in January 1, 2007 for $300,000 and estimated a $10,000 residual value, 10-year useing the straight-line method of depreciation On December 31, 2011, the equipment was sold for $500,000. Instruction: Journalize the transaction on December 31, 2011. Cash 50,000 41,000 Accumulated Dep 90,000 Equipment gain on Disposal 1000 50,000 Cash Accumulated Dep 42,000 90,000 Equipment loss on Disposal 2,000 Cash 50,000 Accumulated Dep. 42,000