The beginning balance (book value) on equipment was 218,000. The ending equipment balance (book value) was $315,000. During the year you purchased equipment worth 135,000. You took out a loan for 56,000 and traded in some equipment for a trade-in value of 18,000 and a book value of 3,000, and paid cash for the rest.

a. What must the amount of depreciation for the year have been if there were no other transactions?

b. What was the amount of cash paid?

c. Would the trade-in of the old equipment result in a gain or loss on the income statement, and if so how much?