22) Equipment was sold for $20,000. The equipment was originally purchased for $85,000. At the time of the sale, the equipment had accumulated depreciation of $30,000. Calculate the gain or loss to be recorded on the sale of equipment.

A) Gain of $20,000.

B) Loss of $5,000.

C) Loss of $35,000.

D) Gain of $5,000.

23) Berry Co. purchases a patent on January 1, 2021, for $40,000 and the patent has an expected useful life of five years with no residual value. Assuming Berry Co. uses the straight-line method, what is the amortization expense for the year ended December 31, 2022?

A) $0.

B) $8,000.

C) $16,000.

D) $40,000.