Equipment was acquired at the beginning of the year at a cost of $79,320. 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.

a. What was the depreciation expense for the first year? $fill in the blank 06d7a405800907d_1

b. Assuming the equipment was sold at the end of the second year for $59,900, determine the gain or loss on sale of the equipment. $fill in the blank 06d7a405800907d_2

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

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