Alpha Company purchased an asset on June 30, 2021 for $285,000. The estimated useful life of the asset was determined to be 5 years with a residual value of $10,000. Alpha decided to use the straight-line method of depreciation. The asset was sold on October 1, 2024 for $175,000 .

Required:

1. What was the gain or loss on the sale of the asset?
2. Prepare the journal entry to record the gain or loss.