Gain or Loss on Sale of Fixed Assets Luigi's Pizza Company purchased a delivery van in early 20XI for $45,000 and depreciated it on a straight-line basis over its useful life of 5 years. Estimated residual value was $5,000. The company sold the van in early 20X4 after recognizing 3 years of depreciation. 1. Suppose Luigi's Pizza received $25,000 cash for the van. Compute the gain or loss on the sale. Prepare the journal entry for the sale of the van. 2. Suppose Luigi's Pizza received $17,000 cash for the van. Compute the gain or loss on the sale. Prepare the journal entry for the sale of the van.