Question 5 Buggy Company purchased equipment on January 1, 2019, for $100,000. The residual value is $10,000 and the estimated life is 10 years. Assuming the company uses the double-declining blaance method to depreciate this asset, compute the amount of gain/loss that Buggy Company would report if they sold the equipment for $70,000 on December 31, 2020. O $12,000 loss O $6,000 gain $10,000 loss O $4,400 gain O None of the above.

Bugzy Company purchased equipment on January 1.2019, for $100,000. The residual value ts $10,000 and the estimated life is 10 years. Assuming the company uses the double declining blaance method to depreciate this asset, compute the amount of Jain/loss that Bugey Company would report if they sold the equipment for $70,000 on December 31, 2020. $12.000 ioss $10,000 lass \$4,400 gain None of the above