Cook Corporation reported the following related to property and equipment (all in millions):

From the balance sheets:

{Requirements}
1. Draw T-accounts for Property and Equipment and Accumulated Depreciation. Enter information as presented and solve for the unknown in each account 2. Based on your calculations in requirement 1 , calculate the carrying amoúnt of assets sold during 2020. What is the difference between the sales price and the carrying amount?
3. Prepare the journal entry for the sale of property and equipment during 2020. Describe the effect of this transaction on the financial statements. Compare the sales price and the carrying amount in the journal entry, and compare this to the difference you calculated in requirement 2 . Describe briefly.
4. Prepare a T-account for Property and Equipment, Net. Repeat requirement 1.

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12/31/20 12/31/19 Property and equipment Accumulated depreciation $ 26,430 (16,045) $ 24,220 (15,210) From the investing activities section of the 2020 cash flow statement: Cash used to purchase property and equipment Proceeds from sale of property and equipment From the 2020 income statement: Depreciation expense Gain or loss on the sale of equipment ($2,820) 43 $1,145