Problem 7-8A Record the disposal of equipment (L07-6) [The following information applies to the questions displayed below.) New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $640,000. The ovens originally cost $844,000, had an estimated service life of 10 years, had an estimated residual value of $54,000, and were depreciated using straight line depreciation. Complete the requirements below for New Morning Bakery Problem 7-8A Part 1 Required: 1. Calculate the balance in the accumulated depreciation account at the end of the second year Accumulated depreciation 2. Calculate the book value of the ovens at the end of the second year. Book value Problem 7-8A Part 3 3. What is the gain or loss on the sale of the ovens at the end of the second year? Gain on sale Loss on sale 4. Record the sale of the ovens at the end of the second year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet