E717 Abbott Landscaping purchased a tractor at a cost of $42,000 and sold it three years later for $21,600. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $3,000 residual value. Tractors are included in the Equipment account.

Required:

1. Record the sale.

2. Assume the tractor was sold for $13,600 instead of $21,600. Record the sale.