Counselors of Milton purchased equipment on January 1, 2023, for $44,000. Counselors of Milton expected the equipment to last for four years and have a residual value of $4,000. Suppose Counselors of Milton sold the equipment for $26,600 on December 31, 2024, after using the equipment for two full years. Assume depreciation for 2024 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)