Equipment was acquired at the beginning of the year at a cost of $75,000. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,500.

Required:

a.	What was the depreciation expense for the first year?
b.	Assuming the equipment was sold at the end of the second year for $59,000, determine the gain or loss on sale of the equipment.
c.	Journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.