Sale of Equipment

Equipment was acquired at the beginning of the year at a cost of $29,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $570.

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

b. Assuming the equipment was sold at the end of year 2 for $6,820, 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.