Company purchased office equipment on January 1, Year1. Company uses the straight line method for depreciation. the office equipment cost $40,000 Company estimated a $2,000 residual value and a 10-year life for the equipment.

1. What is depreciation expense on the office equipment in Year1? 3800 2. What will be the balance in accumulated depreciation at the end of three full years of use? 11400 Type your answers to 1 and 2 as a number- no punctuation of any kind. 3. Assume the equipment is sold after 3 full years of use, for proceeds of $20,000, what amount of gain or loss would be reported on the income statement? 8600 Type your answer to this question as a number followed by G for gain or L for loss. Use no spaces or commas. For example, a $400 loss would be 400L and a $1,000 gain would be 1000G.