ABC Catering Service purchased equipment on January $1,2024,$ for $$55,179.$ Suppose ABC Catering Service sold the equipment for $$41,000$ on December $31,2025.$

Accumulated Depreciation as of December $31,2025,$ was $$16,978.$ Joumalize the sale of the equipment, assuming straight$-$line depreciation was used.

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

Market value of assets received

Less: Book value of asset disposed of

Cost

Less: Accumulated Depreciation

Gain or $($Loss$)$