2. Equipment was acquired on January 1, 20Y1 for $370,000. The equipment was estimated to have a useful life of 8 years, a residual value of S6,000 and was being depreciated using the straight-line method. At the beginning of the year 20Y4 a component costing S30,000 was added to the equipment and the assets total estimated useful life was increased by two years and the salvage value was increased by $2,000. On July 1, 20Y6, the asset was sold for $170,000. Determine the gain or loss on the sale and prepare the journal entry to record the sale