New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $510,000. The ovens originally cost $701,000, had an estimated service life of 10 years, had an estimated residual value of $41,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery.

General journal drop-down list: No Journal Entry Required Depreciation Expense Loss Salaries Expense Accounts Payable Dividends Natural Resources Sales Revenue Accounts receivable Equipment Notes Payable Service Fee Expense Accumulated Depreciation Franchise Patents Service Revenue Advertising Expense Gain Prepaid Insurance Supplies Buildings Goodwill Property Tax Expense Supplies Expense Cash Interest Expense Rent Expense Trademarks Common Stock Interest Revenue Repairs and Maintenance Expense Utilities Expense Copyrights Land Research and Development Expense Delivery Expense Legal Fees Expense Retained Earnings

Required: 1. Calculate the balance in the accumulated depreciation account at the end of the second year. Accumulated depreciation 2. Calculate the book value of the ovens at the end of the second year. Book value 3. What is the gain or loss on the sale of the ovens at the end of the second year? M Gain on sale Loss on sale 4. Record the sale of the ovens at the end of the second year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the sale of ovens. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal