26. Disposal LO2,4 On January 1, 2012, A&G Company pays $40,000 for equipment with a 10-year estimated life and a 5,000 estimated salvage value. On January 1, 2016, A&G sells the equipment for $18,500 Required Calculate the gain or loss on the sale assuming A&G uses the straight-line method of depreciation. Where should the gain or loss on the sale be pre- sented on the income statement