Equipment was acquired at the beginning of the year at a cost of $$79,380.$ The equipment was depreciated using the straight$-$line method based upon an estimated useful life of $6$ years and an estimated residual value of $$7,740.$

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

b$.$ Assuming the equipment was sold at the end of the second year for $$59,900,$ determine the gain or loss on the sale of the equipment.

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