10. Paddie Inc purchased a piece of equipment for $20,000 on January 1, 2019. Management estimates salvage value of $2,000 and a useful life of five years. It uses the straight-line method of depreciation. Where applicable, it applies the half-year rule. On December 1, 2021 it disposed of the asset for $13,000 cash. What is included in the journal entry to record the disposal? a. Gain on disposal of $200 b. Loss on disposal of $1,600 c. Gain on disposal of $2,200 d. Loss on disposal of $5,000 11. VSP Inc. purchased equipment for $20,000 on March 1, 2013. The equipment's accumulated depreciation balance was $15,000 at the end of 2019 after depreciation was claimed for the year. On December 31, the old equipment was traded equipment for new equipment with a list price of $22,000. A trade-in allowance of $5,500 is given on the old equipment and cash of $16,000 was paid. The fair value of the old equipment at the time of trade-in was $2,000. What is the gain or loss on disposal? a. Loss of $3,000 b. Loss of $5,000 c. Gain of $5,500 d. Gain of $500