Instructions Equipment was acquired at the beginning of the year at a cost of $79,440. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,500. Required: a. What was the depreciation expense for the first year? b. Assuming the equipment was sold at the end of the second year for $59.897, determine the gain or loss on sale of the equipment c. Journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 620 Gain on Sale Equipment 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Inventory 117 Supplies 119 Prepaid Insurance EXPENSES 510 Cost of Goods Sold 520 Salaries Expense 521 Advertising Expense 522 Supplies Expense 523 Delivery Expense 524 Rent Expense 120 Land 121 Equipment 122 Accumulated Depreciation 132 Goodwill 525 Insurance Expense 133 Patents LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable 531 Repairs and Maintenance Expense 541 Depreciation Expense 543 Depletion Expense 544 Amortization Expense-Patents 591 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Equipment EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends First Questions a What was the depreciation expense for the first year? Depreciation expense . Assuming the equipment was sold at the end of the second year for $59.897. determine the gain or loss on sale of the equipment Sale of the equipment