#12. Equipment was acquired at the beginning of the year at a cost of $78,540. The equipment was depreciated using the straight-line method based upon an estimated useful life of six years and an estimated residual value of $7,740.

a. What was the depreciation expense for the first year? $__

b. Assuming the equipment was sold at the end of the second year for $59,300, determine the gain or loss on sale of the equipment. $__ Gain or Loss (select one)

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.