The Red Company purchased equipment on June 1, 2020. Assuming the cost of the equipment is $66,000, the residual value is $6,000, a useful life of 5 years and the use of the straight line method. The company's year end is December 31.

1) What is depreciation expense at December 31, 2020? $ Answer

2) What is accumulated depreciation at December 31, 2022? $ Answer

3) What is the carrying value of the asset at December 31, 2023? $ Answer

4) What is the carrying value of the asset at January 1, 2024? $ Answer

5) What is depreciation expense at December 31, 2025? $ Answer

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? Answer LOSS or GAIN ?

How much is the gain or loss? $ Answer