Mondale Winery depreciates its equipment using the group method. The cost of equipment purchased in 2011 totaled $425,000. The estimated residual value of the equipment was $40,000 and the group depreciation rate was determined to be 18%. What is the annual depreciation for the group? If equipment that cost $42,000 is sold in 2012 for $35,000, what amount of gain or loss will the company recognize for the sale?
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