(Solution) - Mousey Company purchased a depreciable asset for 1 000 000 on M -(2025 Original AI-Free Solution)

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Mousey Company purchased a depreciable asset for $1,000,000 on May 1, 2005. The estimated salvage value is $100,000, and the estimated useful life is 10 years. The straight-line method is used for depreciation. On June 1, 2009 the asset is sold.
a) What is the balance in accumulated depreciation on when the asset is sold?
b) Record the appropriate journal entry on June 1, 2009 assuming the asset is sold for $500,000.