Equipment was acquired at the beginning of the year at a cost of $$76,860.$ The equipment was depreciated using the straight$-$line method based upon an estimated useful life of $6$ years and an estimated residual value of $$7,860.$

Required

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a$.$ What was the depreciation expense for the first year?

fill in the blank $1$ of $1$$

b$.$ Assuming the equipment was sold at the end of the second year for $$58,200,$ determine the gain or loss on the sale of the equipment.

fill in the blank $1$ of $2$$

fill in the blank $2$ of $2$

Question Content Area

c$.$ Journalize the entry for the sale. If an amount box does not require an entry, leave it blank.