sale of equipment Equipment was acquired at the begimning of the year at a cost of $31,750. The equipment was depreciated using the double declining-balance method based on an estimated useful life of ten years and an estimated residual value of $620. a. What was the depreciation for the first year? x b. Assuming the equipment was sold at the end of year 2 foe $7,340, determine the gain or loss on the sale of the equipment. x roseck wir Book value is the asset cost minus accumulated depreclation. In the first year, the balance in the accumulated depreciation account is zero. Compare the book value to the sale fkice. If the book vaiue is more than the sale price, the eeuipment was sold for a loss. If the book value is less than the sale price, the equipment was sold for a gain. c. Journalize the entry on December 31 to record the sale. If an amount box does not require an entry, leave it blank