1. The La Miguela Company purchased some equipment for $21,700 on April 1st, 2020 and expects that it will be useful for 10 years at which time it could be sold for $3,100. What is the depreciation expense related to this equipment at December 31st, 2020? Enter as a positive number.

2. The Nevada Company purchased equipment on January 1st, 2019 for $20,500 and expects that it will be useful for 10 years at which time it could be sold for $3,500. The company used the equipment for three years, then sold it for $16,000 on January 1st, 2022. What amount of gain or loss would the company report on the sale? Use a positive number to indicate a gain or a negative number to indicate a loss.

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