Funseth Farms Inc. purchased a tractor in 2010 at a cost of $30000. The tractor was sold for $2200 in 2013. Depreciation recorded through the disposal date totaled $20000.

Required:

1. Calculate the gain or loss on the sale.

2. Assuming that the tractor was sold for $12000, calculate the gain or loss on the sale.

Gain or loss on sale 1 Gain or loss on sale 2