The Orange Company purchased equipment on June 1, 2020. Assuming the cost of the equipment is $70,000, the residual value is $6,000, a useful life of 4 years and the use of the diminishing balance method using 2 times the straight line rate. The company's year end is December 31.

Round all answers to the nearest dollar.

1) What is depreciation expense for the year ended December 31, 2020?

2) What is the depreciation rate (%)?

3) What is accumulated depreciation for the year ended December 31, 2022?

4) What is the carrying value of the asset for the year ended December 31, 2024?

5) What is depreciation expense for the year ended 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 $10,000?

How much is the gain or loss?