1. Sale of Equipment

a. Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $47,455.

- What was the depreciation for the first year? Round your answer to the nearest cent.

- Using the rounded amount from Part a in your computation, determine the gain or loss on the sale of the equipment, assuming it was sold at the end of year eight for $108,026. Round your answer to the nearest cent. Enter your answer as a positive amount.

- Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

b. On December 31, it was estimated that goodwill of $5,600,000 was impaired. In addition, a patent with an estimated useful economic life of 12 years was acquired for $864,000 on April 1.

- Journalize the adjusting entry on December 31 for the impaired goodwill. If an amount box does not require an entry, leave it blank.

- Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank.