Equipment was acquired at the beginning of the year at a cost of $78,660. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7.920. 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 $59,486, 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. CHART OF ACCOUNTS General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 620 Gain on Sale Equipment 114 Interest Receivable 115 Notes Receivable EXPENSES 116 Inventory 510 Cost of Goods Sold 117 Supplies 520 Salaries Expense 119 Prepaid Insurance 521 Advertising Expense 120 Land 522 Supplies Expense 523 Delivery Expense 121 Equipment 122 Accumulated Depreciation 524 Rent Expense 132 Goodwill 133 Patents 525 Insurance Expense 531 Repairs and Maintenance Expense 541 Depreciation Expense LIABILITIES 543 Depletion Expense 544 Amortization Expense-Patents 210 Accounts Payable 211 Salaries Payable 591 Miscellaneous Expense 213 Sales Tax Payable 710 Interest Expense 214 Interest Payable 720 Loss on Sale of Equipment 215 Notes Payable EQUITY 810 Common Stock 311 Retained Earnings 312 Dividends a. What was the depreciation expense for the first year? Depreciation expense b. Assuming the equipment was sold at the end of the second year for $59, 486, determine the gain or loss on sale of the equipment. Sale of the equipment $ c. Journalize the entry to record the sale on December 31. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 +