Equipment was originally purchased on 1/1/11for $20,000 and is sold on 1/1/14 for $8,000. It was determined that its salvage value was $5,000 and it has been fully depreciated.

Equipment was originally purchased on 1/1/11for $20,000 and is sold on 1/1/14 for $3,000. It was determined that its salvage value was $5,000 and it has been fully depreciated.

Can you answer this with explanation