Equipment was acquired at the beginning of the year at a cost of $600,000. The equipment was depreciated using the double-declining-balance method based on estimated useful life of 16 years and an estimated residual value of $60,000. a. What was the depreciation for the first year? $ 75,000 b. Assuming the equipment was sold at the end of the second year for $480,000, determine the gain or loss on the sale of the equipment. $ 20,625 Gain Feedback Check My Work Book value is the asset cost minus accumulated depreciation. In the first year, the balance in the accumulated depreciation account is zero Compare the book value to the sale price. If the book value is more than the sale price, the equipment was sold for a loss. If the book value is less than price, the equipment was sold for a gain. C. Journalize the entry on December 31 to record the sale. If an amount box does not require an entry, leave it blank Dec 31 Cash 480,000 Accumulated Depreciation Equipment 37.500 X Equipment 600.000 Gain on Sale of Equipment 20.625