Sale of Asset On January 1, 1999, Timmins Company paid $400,000 to purchase equipment with an expected life of five years and no estimated salvage value. Due to a major flood, Timmins Company was forced to sell the equipment for $210,000 on December 31, 2000.

a. What amount of gain or loss would be recorded when the equipment is sold if Timmins uses straight-line depreciation?

b. Prepare the journal entry to record the sale, assuming Timmins uses straight-line depreciation.

c. What amount of gain or loss would be recorded when the equipment is sold if Timmins uses double-declining-balance depreciation?

d. Prepare the journal entry to record the sale, assuming Timmins uses double-declining-balance depreciation.