BUSINESS 10010 On January 1, 2015, Erwin Inc. sold used equipment to Fourmaux Company for $3,000

On January 1, 2015, Erwin Inc. sold used equipment to Fourmaux Company for $3,000 downand three annual payments of $9,500, each made at December 31. Fourmaux canborrow at 5.5%, Erwin at 4%. Erwin’s equipment had cost $55,000 new and had a bookvalue of $25,000 at the time of the sale.8-1. Compute the sales price of the equipment.8-2. Compute the amount of any gain or loss Erwin had on the sale.8-3. Record the sale by Erwin.8-4. Prepare an amortization table for Erwin.8-5. Prepare the journal entries needed for Erwin at December 31, 2017.8-6. Determine how the entry for the sale in 2016 would affect Erwin’s SCF.8-7. Determine how the enry(ies) written on 12/31/17 would affect Erwin’s SCF.8-8. Record the purchase of the equipment by Fourmaux on 1/1/15.

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