Sale of Equipment

Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $40,965

a. What was the depreciation for the first year? Round your answer to the nearest cent.

b. Using the rounded amount from Part a in your computation, determine the gain or loss on the sale of the equipment, assuming it was sold at the end of year eight for $102,737. Round your answer to the nearest cent. Enter your answer as a positive amount.

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

	Accounts Payable, Cash, Depreciation Expense, Equipment, Gain on Sale of Equipment
	Accounts Payable, Accumulated Depreciation-Equipment, Depreciation Expense, Equipment, Gain on Sale of Equipment
	Accounts Payable, Accumulated Depreciation-Equipment, Depreciation Expense, Gain on Sale of Equipment, Loss on Sale of Equipment
	Accounts Payable, Accumulated Depreciation-Equipment, Depreciation Payable, Equipment, Depreciation Expense