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Selected accounts included in the property, plant, and equipment section of Carlton Corporation's balance sheet at December 31, year 7, had the following balances:

Land $ 400,000

Land improvements 130,000

Buildings 2,000,000

Machinery and equipment 800,000

During year 8, the following transactions occurred:

1. A machine costing $16,000 on January 1, year 1, was scrapped on June 30, year 8. Straight-line depreciation had been recorded on the basis of a 10-year life with no salvage value.

2. A machine was sold for $48,000 on July 1, year 8. Original cost of the machine was $74,000 on January 1, year 5, and it was depreciated on the straight-line basis over an estimated useful life of eight years and a salvage value of $2,000.

Answer the following questions:

Scrapping the machine on June 30 of year 8 resulted in a

Gain

Loss

The gain or loss resulting from scrapping the machine on June 30 year 8 is Answer 2

DO NOT USE ANY SIGN --> THAT IS NO $ NOR COMMAS (,). JUST ENTER A NUMBER

Sale of the machine on July 1 of year 8 resulted in a

Gain

Loss

The gain or loss resulting from the sale of the machine on July 1 year 8 is Answer 4

DO NOT USE ANY SIGN --> THAT IS NO $ NOR COMMAS (,). JUST ENTER A NUMBER