Sale of Equipment

Equipment was acquired at the beginning of the year at a cost of $34,500. 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 $670.

a. What was the depreciation for the first year? $fill in the blank 912cadfdbf8d01a_1

b. Assuming the equipment was sold at the end of year 2 for $8,500, determine the gain or loss on the sale of the equipment. $fill in the blank 912cadfdbf8d01a_2

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

		fill in the blank e6c962ffcff6008_2	fill in the blank e6c962ffcff6008_3
		fill in the blank e6c962ffcff6008_5	fill in the blank e6c962ffcff6008_6
		fill in the blank e6c962ffcff6008_8	fill in the blank e6c962ffcff6008_9
		fill in the blank e6c962ffcff6008_11	fill in the blank e6c962ffcff6008_12