Strawberry Fields purchased a tractor at a cost of $40,000 and sold it two years later for $25.100. Strawberry Fields recorded depreciation using the straight line method, a five-year service life, and an $6.000 residual value 1. What was the gain or loss on the sale? 2. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account fleld.) View transaction list Journal entry worksheet Record the sale. Note: Enter debits beture credes. Transaction General Journal Debit Credit Record entry Clear entry View general journal A company purchased a computer system at a cost of $29.000. The estimated useful life is 8 years, and the estimated residual value is $6,000. Assuming the company uses the double-declining-balance method, what is the depreciation expense for the second year? (Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.) $6,938. $7,688. $5,438. S7250. Ethical Energy, Inc, earnings have not been as strong as expected and net income will fall short of last year's income. The company's employees receive a bonus only if the company's net income in the current year exceeds the net income from the past year. The President has an idea to ensure that net income will increase this year by capitalizing routine maintenance costs on equipment that were incurred this year. These costs were treated as an expense on the income statement. Which of the following statements is true? Multiple Choice As a president you are responsible to reward employees at any cost. According to GAAP, capitalizing routine maintenance costs as an asset is acceptable. The president's suggestion is the best for the business and shareholders in the future and violates no ethical consideration. The president's proposal is unethical and violates GAAP