On October 1, 2017 Howth Co purchased equipment for $420,000. The estimated service life of the equipment is five years and the residual value is 520,000. Partial year depreciation is calculated based on the number of months the asset is in service. The equipment was sold on June 30, 2021 for $80,000. Howth uses the straight-line method of depreciation Two debits in the journal entry to record the sale of the equipment are: $300,000 to Accumulated Depreciation: $20,000 Loss on Sale of Equipment $300,000 to Accumulated Depreciation: $40.000 Loss on Sale of Equipment $315,000 to Accumulated Depreciation: $25.000 Loss on Sale of Equipment $315,000 to Accumulated Depreciation: $15,000 Loss on Sale of Equipment On February 15, 2021. Pesk Co, acquired all the outstanding common stock Co for $400,000 when the fair value of Herm's identifiable tangible and intangible assets was $500,000 and the fair value of liabilities assumed by Pesk was $160.000 Pesk performed a goodwill impairment test at the end of 2021 and determined the following: Fair value of Herm $370,000 Fair value of Herm's net asset (excluding goodwill) $330.000 Book value of Herm's net assets (including goodwill $390,000 The goodwill impairment loss that Pesk should recognize at the end of 2021 is: $40,000 $60,000 $20.000 $30,000