Glennys Gem Company manufacturers jewelry for Tiffanys. On Jan 1, 2020 Glenny purchase equipment with a cost of $26,000 for cash. Glenny also incurred the following additional costs:

Sales Tax $1,200

Delivery Costs $850

Electricity costs for Jan 31^st $2,000

Installation Costs $1,500

Glenny uses the Straight-line Depreciation method. The equipment has a 10 year useful life and Glenny estimates the Equipment will have a $750 salvage value.

1. What is the Total Cost of the Equipment?
2. Record the Purchase of the Equipment.
3. What is the annual depreciation expense?
4. Record the depreciation for Dec 31^st 2020.
5. Assume that on Jan 1^st 2026, after 6 years of ownership, Glenny sells the equipment to Jacobs Jewelry store for $7,500 cash. What is the gain or loss on the sale?
6. Record the sale.