Sale of Equipment

Equipment was acquired at the beginning of the year at a cost of $$600,000.$ The equipment was depreciated using the straight$-$line method based on an estimated useful life of $9$ years and an estimated residual value of $$40,655.$

Question Content Area

a$.$ What was the depreciation for the first year? Round your answer to the nearest cent.

$$62,149\mathrm{.}44$

b$.$ Using the rounded amount from Part a in your computation, determine the gain or loss on the sale of the equipment, assuming it was sold at the end of year eight for $$95,524.$ Round your answer to the nearest cent. Enter your answer as a positive amount.

$$\_\_\_\_\_\_\_\_\_\_\_\_$

what are the steps for getting the correct answer for part b$?$