Equipment was acquired at the beginning of the year at a cost of \$40,500 . The equipment was depreciated using the double declining-balance method based on an estimated useful life of ten years and an estimated residual value of $790.

Equipment was acquired at the beginning of the year at a cost of $40,500. The equipment was depreciated using the double- declining-balance method based on an estimated useful life of ten years and an estimated residual value of $790. a. What was the depreciation for the first year? b. Assuming the equipment was sold at the end of year 2 for $9,970, determine the gain or loss on the sale of the equipment. $ C. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank