1. In October, Sierra took some equipment out of service that was replaced with more efficient machines. The original cost of the equipment was $60,000. The equipment was purchased in 2016 and was being depreciated over an 8-year life. Sierra is looking for a buyer for the equipment. The company estimates the equipment will sell within a few months at the asking price of $12,000. The company uses straight-line depreciation for plant assets assuming no residual value. Prepare any required journal entries, and show all supporting calculations.