On the first day of the year, Firefall Company purchased equipment at a cost of $340,000. The equipment was expected to have a useful life of four years, a residual value of $20,000, and is depreciated at a straightline rate of 25%. Firefall sold the equipment at the beginning of the fourth year when the balance in the accumulated depreciation account was $240,000. Journalize the entry to record the sale if the equipment was sold for:

a. $95,000

b. $105,000