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Equipment was acquired at the beginning of the year at a cost of $75,900. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,560.

Required

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a. What was the depreciation expense for the first year? $fill in the blank 68d35e045fccfa9_1

b. Assuming the equipment was sold at the end of the second year for $57,400, determine the gain or loss on the sale of the equipment. $fill in the blank 68d35e045fccfa9_2

GainLoss

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c. Journalize the entry for the sale. If an amount box does not require an entry, leave it blank.

	CashDepreciation ExpenseEquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated DepreciationDepreciation ExpenseEquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated DepreciationCashDepreciation ExpenseEquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accounts PayableAccumulated DepreciationCashGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -