The Green Company purchased equipment on October 1, 2020. Assuming the cost of the equipment is $70,000, the residual value is $6,000, and uses the units of production method for depreciation.

During its useful life, the equipment was expected to be used for 10,000 hours. Anticipated annual hourly use was as follows: 1300 hours in 2020, 2800 hours in 2021, 3300 hours in 2022, 1900 hours in 2023 and 700 hours in 2024.

1) What is the depreciation per unit of production?

2) What is accumulated depreciation at December 31, 2021?

3) What is depreciation expense for the 2022 year?

4) What is the carrying value of the asset at December 31, 2024?

You were asked to prepare the journal entry to record the sale of the above equipment on December 31, 2022.

Is it a gain or loss if the equipment was sold for $30,000?

How much is the gain or loss?