Counselors of Atlanta purchased equipment on January $1,2015,$ for $$20,000.$ Counselors of Atlanta expected the equipment to last for four years and have a residual value of $$2,000.$ Suppose Counselors of Atlanta sold the equipment for $$8,000$ on December $31,2017,$ after using the equipment for three full years. Assume depreciation for $2017$ has been recorded. Journalize 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$)$

Now, journalize the sale of the equipment. $($Record debits first, then credits. Select the explanation on the last line of the journal entry table.$)$