QUESTION 6 An asset was purchased for $33,000 on January 1, 2019. The asset's estimated useful life was five years, and its residual value was $4000. The straight- method of depreciation was used. Calculate the gain or loss if the asset is sold for $26,000 on December 31, 2019, the last day of the accounting period $1200 loss 5600 gain $1200 gain no gain or no loss QUESTION 7 Cycle Sales Company offers warranties on all their bikes. They estimate warranty expense at 3.5% of sales. At the beginning of 2019, the Estimated Warran Payable account had a credit balance of $1400. During the year, Cycle Sales had $299,000 in sales and had to pay out $5900 in warranty payments. How m Warranty Expense will be reported on the 2019 income statement? $5965 $7300 $9065 $10,465