19) An asset's book value is $36,000 on January 1, Year 6. The asset is being depreciated 19) S500 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $25,000, the company should record: A) A loss on sale of $2,000. B Neither a gain or loss is recognized on this type of transaction. C) A gain on sale of $1,000. D) A loss on sale of $1,000. E) A gain on sale of $2,000. 20) A company's old machine that cost $40,000 and had acumulated depreciation of 20) $22,000 was traded in on a new machine having an estimated 20-year life with an invoice price of $45,000. The company also paid $33,000 cash, along with its old machine to acquire the new machine. If this transaction has commercial substance, the new machine should be recorded at: A) $40,000. B)$33,000.C)S51,000. D) $45,000. ES18,000 21) Victory Company purchases office equipment at the beginning of the year at a cost of 21) $15,000. The machine's useful life is estimated to be 7 years with a $1,000 salvage value. The journal entry to record the first year depreciation is: A) Debit Depreciation Expense $2,000, credit Office Equipment $2,000. B) Debit Accumulated Depreciation $2,143; credit Office Equipment $2,143. C) Debit Depreciation Expense $2,143; credit Accumulated Depreciation $2,143. D) Debit Office Equipment $2,000; credit Accumulated Depreciation $2,000. E) Debit Depreciation Expense $2,000, credit Accumulated Depreciation $2,000. 22) Ngu owns equipment that cost $93,500 with accumulated depreciation of $64,000 Ngu 22) asks $35,000 for the equipment but sells the equipment for $33,000. Compute the amount of gain or loss on the sale. A) $3,000 gain. B) $5,500 loss. C) $3,500 gain. D) $3,500 loss. E) S5,500 gairn