1. On August 16, 2016, Cory Corp. acquires a new piece of equipment for $80,000. Bryant depreciates equipment over ten years, assumes the residual value to be 5% of the purchase price, and uses a half-year convention in the year of acquisition. Record the journal entries for depreciation for 2017 and 2018.

Year	Account Name And Explanation	Debit	Credit
2017	Depreciation expense	$7,600
	Accumulated depreciation on New equipment		$7,600
	(Depreciation charged for 2017)
2018	Depreciation expense	$7,600
	Accumulated depreciation on New equipment		$7,600
	(Depreciation Charged for 2018)

2. Related to the above Question 17, if Bryant Corp. sells the equipment late in December 2018, for $70,000, what is the gain or loss on the sale?