Equipment was purchased on January 1 at a cost of $130,000. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $10,000.

(a)	What was the depreciation expense for the first year?
(b)	Assuming the equipment was sold at the end of the second year for $95,000, determine the gain or loss on sale of the equipment.
(c)	Journalize the entry to record the sale.