On January 01, 2020, your company had a machine costing $20,000, which had accumulated depreciation of $16,000. On that same day, the company sold the machine for cash:

1. For $5,500
2. For $3,000

2.1 Determine the gain or loss on sale of this machine in both of the above scenarios i) and ii).

2.2 Write down the journal entry for the sale of the machine on the date, in both of the above scenarios i) and ii).