1). Liliana spends $20,000 (cash) on a piece of equipment for use in her restaurant. She plans to use the straight-line method to depreciate the equipment over 5 years. She expects it to have no value at the end of the 5 years. What are the accounts affected to record the depreciation entry and at what amount for monthly depreciation?

2). Related to above question: After 4 years, Liliana sells the equipment for $4,000. Is there a gain or a loss? At what amount?