Indicate How Each Event Affects the Elements of Financial Statements

Essay

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts.Enter only one letter for each element.

-The Baker Company purchased an asset on January 1,2016 for $200,000.The asset had a $50,000 salvage value and a 10 year life.The asset was sold on January 1,2018 for $174,000.Show how the sale will affect Baker's financial statements,assuming that Baker uses straight-line depreciation.