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 upon an estimated useful life of 6 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.