I HAVE THE ANSWER I JUST NEED HELP WITH EXPLANATION

The Hughes Corporation purchased some equipment on November 1st for $77,400 and expects that it will be useful for eight years at which time it could be sold for $3,000. The company used the equipment for the rest of the current year and an additional four years after that; if the equipment were sold for $36,000 at that point, what amount of gain or loss would the company report on the sale? Use a positive number to indicate a gain or a negative number to indicate a loss. 2,650 (with margin: 0) Tip: Calculate the annual depreciation as (77,4003,000)/8 which is equal to 9,300 per year. Since the company purchased the equipment on November 1 , it will only depreciate 1,550 that first year (9,300/12 months 2 months) then another 9,300 for the next four years for a total of 38,750 . So, when its is sold, the transaction used to the sale would include +36,000 Cash, (77,400) Equipment and +38,750 A/D on the asset side of the accounting framework and when you sum those numbers, the gain (or loss) is the result that would be entered under the R/E column of the framework. In this case the sale would result in a Loss on Sale of 2,650(36,000 77,400+38,750) which would be entered as (2,650) or as 2650 in Canvas