On

MayMay

31,

20182018,

Upper BB.

RouseRouse

Company sold a piece of machinery it had purchased on

JanuaryJanuary

1,

20112011,

with an original cost of

$ 207 comma 000$207,000.

The asset had a useful life of

1010

years and a scrap value of

$ 51 comma 000$51,000.

It sold the asset for

$ 260 comma 000$260,000

in cash.

RouseRouse

recorded depreciation through

DecemberDecember

31,

20172017,

using the straight-line method. What was the carrying value of the asset on the date of sale? What is the gain or loss on disposal? Record the journal entry for the sale.