Sale of equipment

Equipment was acquired at the beginning of the year at a cost of $$28,750.$ The equipment was depreciated using the double$-$declining$-$balance method based on an estimated useful life of ten years and an estimated residual value of $$560.$

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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 year $2$ for $$7,080,$ determine the gain or loss on the sale of the equipment.

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

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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 $31$

Cash Cash

Accumulated Depreciation$-$Equipment Accumulated Depreciation$-$Equipment

Loss on Sale of Equipment Loss on Sale of Equipment

Equipment Equipment