Equipment Was Acquired at the Beginning of the Year at a Cost

Essay

Equipment was acquired at the beginning of the year at a cost of $75,000. The equipment was depreciated using the straight-line method based on an estimated useful life of six years and an estimated residual value of $7,500.
(a)What was the depreciation expense for the first year?
(b)Assuming the equipment was sold at the end of the second year for $59,000, determine the gain or loss on sale of the equipment.
(c)Journalize the entry to record the sale.