Present journal entries to record each of the following events relating to a polishing machine owned by Crawford Company. Crawford uses the straight-line method of recording depreciation on machinery and has a December 31 fiscal year. On January 1, Year 1 Crawford Company acquires a polishing machine costing $60,000 for cash. It estimates the machine to have a nine-year life and $6,000 salvage value. During Year 4, Crawford Company determines that the machine will actually have a useful life of eleven years in total instead of nine as originally estimated. It also now expects that the salvage value at the end of the machines useful life will be $4,000.

Question:

On January 2, Year 9, Crawford Company sells the machine for $15,000 in cash. Record the journal entry to reflect the sale of the machine. Is there a gain or loss on the sale? If so, what is the gain or loss on the sale?