Abbott Landscaping purchased a tractor at a cost of $36,000 and sold it three years later for $18,000. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $2,000 residual value. Tractors are included in the Equipment account.

1-Record the sale of equipment.

2-Assume the tractor was sold for $11,200 instead of $18,000. Record the sale.