Equipment acquired on January 2, 2010, is sold on January 8, 2013, for $16,000. The equipment cost $30,000, had an estimated residual value of $6,000, and an estimated useful life of 6 years. The company depreciates their fixed assets on December 31 every year, and the equipment has been depreciated using the straight-line method.

A.     Determine the book value of the asset at the time of sale.
B.   Determine of the business made a gain or a loss on the sale.  How much? 

C.   Journalize the sale.