On January 1, Year 1, Prairie Enterprises issued common stock for $30,000 cash and purchased computer equipment for $28,000 cash. The equipment had a useful life of 5 years and a salvage value of $2,000. Prairie uses the straight line depreciation method.

How much Depreciation Expense does Prairie recognize each year?

What is the ending balance of Accumulated Depreciation at the end of Year 3?

What is the book value of the equipment at the beginning of Year 4?

What is the gain or loss if the equipment is sold for $13,000 at the beginning of Year 4?

What is the gain or loss if the equipment is sold for $1,000 at the beginning of Year 4?