On

MayMay

31,

20182018,

Upper DD.

DorothyDorothy

Company sold a piece of machinery it had purchased on

JanuaryJanuary

1,

20112011,

with an original cost of

$ 288 comma 000$288,000.

The asset had a useful life of

1010

years and a scrap value of

$ 72 comma 000$72,000.

It sold the asset for

$ 262 comma 000$262,000

in cash.

DorothyDorothy

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.