Midwest Printing had a piece of equipment that cost $8,100 and on which $4,500 of accumulated depreciation had been recorded. The equipment was disposed of on January 4, the first day of business of the current year.

1 . Calculate the carrying value of the equipment.

2. Calculate the gain or loss on the disposal under each of the following assumptions:

a. It was discarded as having no value.

b. It was sold for $1,500 cash.

c. It was sold for $4,000 cash.Lo1