ABC Catering Service purchased equipment on January $1,2025,$ for $$41,000.$ Suppose ABC Catering Service sold the

equipment for $$26,000$ on December $31,2027.$ Accumulated Depreciation as of December $31,2027,$ was $$18,000.$

Journalize the sale of the equipment, assuming straight$-$line depreciation was used.

First, calculate any gain or loss on the disposal of the equipment.

Fair value of assets received

Less: Book value of asset disposed of

Cost

Less: Accumulated Depreciation

Gain or $($Loss$)$

Now, journalize the sale of the equipment. $($Record debits first, then credits. Select the explanation on the last line of the

journal entry table.$)$