on januray 1, 2018 , judy comapny purchases an office equipment for $17000 with an estimated useful life of 5 years and 2000$ salvage value. on december 31,2020 judy company exchanged its equipment with carla company for newer equipment and pays $4000 cash. at the date of exchange, the old equipment had a fair value of 5,000$. the straight line method of depreciation is used and financial statements are prepared yearly at december 31.

1) The amount of Annual Depreciation Expense: *

$15,000

$9,000

$3,000

$12,000

2) The amount of Accumulated Depreciation at the date of exchange: *

$12,000

$6,000

$8,000

$9,000

3) The amount of Book Value at the date of exchange: *

$8,000

$5,000

$9,000

$11,000

4) The Cost of the New Equipment: *

$4,000

$5,000

$8,000

$9,000

5) The Gain or Loss amount: *

Loss of $6,000

Gain of $3,000

Gain of $4,000

Gain of $6,000