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ABC Company purchased a piece of equipment for $15,000 and depreciated it for three years over a five-year estimated life with an expected residual value

ABC Company purchased a piece of equipment for $15,000 and depreciated it for three years over a five-year estimated life with an expected residual value at the end of five years of $3,000. At the end of the third year, ABC decided to upgrade to equipment with increased capacity and sold the original piece of equipment for $10,000. Calculate the gain or loss on the disposal at the end of the third year. show all the necessary calculations

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