Equipment was bought at the beginning of the year at a cost of $175,000. The equipment was depreciated using the straight-line method based upon an estimated useful life of 10 years and an estimated residual value of $7,500. a. The equipment was sold at the end of the second year for $139,000. What was the gain or loss on the sale of the equipment? Your answer should say, for example, $10,000 gain or $10,000 loss. You must indicate if it is a gain or loss, as well as the amount. b. Prepare the journal entry for the sale. Date Dec 31 Journal Description Dr. Cr.