Sale of Equipment

Equipment was acquired at the beginning of the year at a cost of $40,750. The equipment was depreciated using thedouble-declining-balance methodbased on an estimated useful life of five years and an estimatedresidual valueof $790.

a. What was thedepreciationfor the first year? $

b. Assuming the equipment was sold at the end of year 3 for $9,330, determine the gain or loss on the sale of the equipment. $

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