Account for disposal of an asset. (LO 5)

Brenda Sue's Stitch \& Sew purchased a sewing machine 4 years ago for \(\$ 29,000\). The company expects the machine to have a salvage value of \(\$ 4,000\) after a 10 -year useful life. Assuming the company uses straight-line depreciation, calculate the gain or loss realized if the company sells the machine after 4 years for:

a. \(\$ 14,250\)

b. \(\$ 18,600\)