Equipment was acquired at the beginning of the year at a cost of $76,140. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,620.

a. What was the depreciation expense for the first year? $fill in the blank a3663a084fcb07f_1

b. Assuming the equipment was sold at the end of the second year for $57,600, determine the gain or loss on sale of the equipment. $fill in the blank a3663a084fcb07f_2

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank or enter "0".

		fill in the blank 2d838af5c07806a_2	fill in the blank 2d838af5c07806a_3
		fill in the blank 2d838af5c07806a_5	fill in the blank 2d838af5c07806a_6
		fill in the blank 2d838af5c07806a_8	fill in the blank 2d838af5c07806a_9
		fill in the blank 2d838af5c07806a_11	fill in the blank 2d838af5c07806a_12