Sale of Equipment

Equipment was acquired at the beginning of the year at a cost of $37,500. The equipment was depreciated using thedouble-declining-balance methodbased on an estimated useful life of ten years and an estimatedresidual valueof $730.

a.What was thedepreciationfor the first year?

$

b.Assuming the equipment was sold at the end of year 2 for $8,670, 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.