Equipment was acquired at the beginning of the year at a cost of $800,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 10 years and an estimated residual value of $60,000.
a. What was the depreciation for the first year?
b. Assuming the equipment was sold at the end of the second year for $650,000, determine the gain or loss on the sale of the equipment.
c. Journalize the entry on December 31 to record the sale.