7-25

Problem 7-8A (Algo) Record the disposal of equipment (LO7-6) [The following information applies to the questions displayed below] New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $580,000. The ovens originally cost $778,000, had an estimated service life of 10 years, had an estimated residual value of $48,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery. Problem 7-8A (Algo) Part 3 3. What is the gain or loss on the sale of the ovens at the end of the second year