K Corp purchased a machine for $32,000, with an expected life of five years and residual value of $4,100. At the end of year three, the truck has accumulated depreciation of $16,740.

Sixmonths

later, the truck is sold for $5,000.

1. What is the amount of adjustment that needs to be made for the additional

sixmonths

of deprecation assuming the

straightline

method is used?

2. Calculate the gain or loss on the sale.

3. Prepare the journal entry for the sale