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A machine was purchased at a cost of $70,000. The equipment had an estimated useful life of 8 years and had a residual value of

A machine was purchased at a cost of $70,000. The equipment had an estimated useful life of 8 years and had a residual value of $6,000. Assuming the equipment was sold at the end of year 6 for $14,000, determine the gain or loss on the sale of the equipment. (Assume the straight-line depreciation method.)

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