Equipment acquired on January 4, 2013, at a cost of $140,000, has an estimated useful life of 16 years, has an estimated residual value of $8,000, and is depreciated by the straight-line method.

Blank 1: What is the book value of the equipment at December 31, 2016, the end of the year? (Hint: pay close attention to the dates.)

Blank 2: Assume that the equipment was sold on July 1, 2017, for $96,700. Enter the amount of any gain or loss on the sale of equipment.

Enter your answer as a number only - no punctuation ($ , .). For example, if your answer is 115,000, enter 115000 in the blank.

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