Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $287,100. The equipment was depreciated using the straight-line method based on an estimated useful life of nine years and an estimated residual value of $27,000. a. What was the depreciation for the first year? 28,900 $ b. Assuming the equipment was sold at the end of the fifth year for $138,700, determine the gain or loss on the sale of the equipment. Enter your answer as a positive amount. $ 138,700 X Loss Feedback Check My Work Book value is the asset cost minus accumulated depreciation. Compare the book value to the sale price. If the book value is more than the sale price, the equipment was sold for a loss. c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash Accumulated Depreciation-Equipment Loss on Sale of Equipment Equipment 138,700