Equipment was acquired at the beginning of the year at a cost of $$77,160.$ The equipment was depreciated using the straight$-$line method based upon an estimated useful

life of $6$ years and an estimated residual value of $$7,860.$

Required

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

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b$.$ Assuming the equipment was sold at the end of the second year for $$58,400,$ 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.