Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $31,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of five years and an estimated residual value of $610.

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

b. Assuming the equipment was sold at the end of year 3 for $7,010, determine the gain or loss on the sale of the equipment.