5. Mondale Winery depreciates its equipment using the group method. The cost of equipment purchased in 2024 totaled $505,000. The estimated residual value of the equipment was $48,000 and the group depreciation rate was determined to be 14%.

What is the annual depreciation for the group? If equipment that cost $50,000 is sold in 2025 for $43,000, what amount of gain or loss will the company recognize for the sale?