Asset Disposal Part A. Assume that Gonzalez Company purchased an asset on January 1, 2012, for $60,000. The asset had an estimated life of six years and an estimated residual value of $6,000. The company used the straight line method to depreciate the asset. On July 1, 2014, the asset was sold for $40,000. Refer to Part A. Assume that Gonzalez Company sold the asset on July 1, 2014 and received $15,000 cash and a note for additional $15,000. 1. Make the journal entry to record depreciation for 2014. Record all transactions necessary for the sale of the asset. 2.How should the gain or loss on the sale of the asset be presented on the income statement Please answer for section B only.