Equipment was acquired at the beginning of the year at a cost of $158,000. The equipment was depreciated using the straight-line method based upon an estimated useful life of 10 years and an estimated residual value of $28,000.
a. What was the depreciation for the first year?
b. Assuming the equipment was sold at the end of the fifth year for $86,000 determine the gain or loss on the sale of the equipment.
c. Journalize the entry to record the sale.