1. Comment on the validity...

2. Equipment was acquired at the....

1. Comment on the validity of the following statements. "As an asset loses its ability to provide services, cash needs to be set aside to replace it. Depreciation accomplishes this goal." 2. Equipment was acquired at the beginning of the year at a cost of $75,000. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,500. a) What was the depreciation expense for the first year? b) Assuming the equipment was sold at the end of the second year for $59,000, determine the gain or loss on sale of the equipment. c) Journalize the entry to record the sale