Sale of Equipment

Equipment was acquired at the beginning of the year at a cost of $$38,000.$ 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 $$740.$

a$.$ What was the depreciation for the first year?

b$.$ Assuming the equipment was sold at the end of year $2$ for $$9,360,$ determine the gain or loss on the sale of the equipment.