Louisville Farms, a breeder of racehorses, paid $432,000 cash for a prize-winning stallion on January 1, 2003. The stallion is depreciated on a straight-line basis, with depreciation for partial years rounded to the nearest month. Estimated useful life was nine years, with no residual value. After owning the animal for six years and five months, Louisville Farms sold the stallion on May 31, 2009, for cash of $85,000. Depreciation had last been recorded on December 31, 2008. a Compute to the nearest full month depreciation for the fractional period from January 1, 2009 to May 31 of 2009. $__20,000____ b Compute the book value of the stallion at May 31, 2009, the date of sale. $___172,000_____ c Compute the gain or loss on the sale of the stallion. $___(87,000)_____ (gain/loss) d In the space provided below, prepare the journal entry to record the sale of the stallion on May 31, 2009. (Use Breeding Stock as the title of the asset account. Assume that depreciation to date of sale already has been recorded.) 2009 General Journal May 31