For each of the following situations, calculate any gain or loss that would arise on the sale of the asset and prepare the journal entries that would be required at the time of the sale. Assume that in each case the assets were depreciated on a straight-line basis and that a full year’s depreciation was expensed in the year the asset was purchased. All sale transactions occur in the fiscal year ended December 31, 2014.

a. Machinery purchased in 2006 for $96,000 is sold on June 30, 2014 for $21,000.

When the machinery was acquired it was estimated to have a 12-year life and residual value of $12,000. ,

b. A building purchased in 2004 for $12,000,000 is sold on April 30, 2014 for

$9,000,000. When the building was purchased it was estimated to have a 20-year life and a residual value of $1,000,000.

c. Office furniture purchased in 2011 for $24,000 is sold on December 31, 2014 for

$8,000. When the furniture was purchased it was estimated to have a five-year life and a residual value of $4,000.