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Level 2

Journal entries to record the sale of a fixed asset with Section 179 deduction

I have a piece of equipment that was purchased in March, 2015 for $7,035.  We took a 100% Section 179 deduction on it in 2015.

 

In October, 2018, we sold the equipment for $4,500.

The depreciation schedule for 200DB/HY is:

2015 - 1,407.00

2016 - 2,251.20

2017 - 1,350.72

2018 -    810.43

 

In my GJ entry for depreciation in 2015, I had this:

 

CREDIT - Accumulated Depreciation - 7,035

DEBIT   -  Depreciation Expense  - 7,035

 

I know that I need to recapture the section 179 and pay gains on the difference.  I have 2 questions:

 

1.  Can I take 1/2 year depreciation in 2018 for the equipment?

2.  What does the GJ entry look like to recapture the section 179, post the sale and recognize the gain on the difference in depreciation amounts?

 

TIA

 

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