Equipment was acquired at the beginning of the year at a cost of $75,300. The equipment was depreciated using the straight-line method based on an estimated useful life of 6 years and an estimated residual value of $7,920.

Question Content Area

a. Compute the depreciation expense for the first year. $fill in the blank

b. Assuming the equipment was sold at the end of the second year for $57,100, determine the gain or loss on sale of the equipment. $fill in the blank

Gain or Loss

Question Content Area

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

	CashDepreciation ExpenseEquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated DepreciationDepreciation ExpenseEquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated DepreciationCashDepreciation ExpenseEquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accounts PayableAccumulated DepreciationCashGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -