Disposal of Equipment Airline Executive reported on an airline as follows: Lufthansa's highly successful policy of rolling over entire fleets in roughly ten years-before the aircrafts have outlived their usefulness-got started in a "spec- tacular" way when seven first-generation 747s were sold. The 747s were bought six to nine years earlier for $22-28 million each and sold for about the same price. 1. Assume an average original cost of $25 million each, an average original expected useful life of 10 years, a $2.5 million expected residual value, and an average actual life of 8 years before dis- posal. Use straight-line depreciation. Compute the total gain or loss on the sale of the seven planes. 2. Prepare a summary journal entry for the sale.