Sale of equipment

Equipment was acquired at the beginning of the year at a cost of $$800,000.$ The equipment was depreciated using the double$-$declining$-$balance method based on an estimated useful life of $10$ years and an estimated residual value of $$60,000.$

Question Content Area

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

fill in the blank $1$ of $1$$

b$.$ Assuming the equipment was sold at the end of the second year for $$650,000,$ determine the gain or loss on the sale of the equipment.

fill in the blank $1$ of $1$$

Question Content Area

c$.$ Journalize the entry on December $31$ to record the sale. If an amount box does not require an entry, leave it blank.

DateAccountDebitCredit

December $31$