Stone Lion Corporation purchased equipment on January 1, 2016 with a cost basis of $30,000, estimated residual value of $5,000, and a five-year life. The equipments total expected output is 10,000 units. Actual production for each year was as follows: 2016: 2,000 units; 2017: 2,800 units; 2018: 1,700 units; 2019: 1,500 units; 2020: 2,000 units

Case 1. The machine is sold on April 1, 2019 for $12,000 in cash Calculation of Gain or Loss on Disposal of Fixed Assets Journal Entry to Record the Sale Record the cash received. Then, remove the asset that was sold Record the gain or loss to balance the journal entry