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Problem - Equipment was acquired at the beginning of the year at a cost of $91,000. The equipment was depreciated using the straight-line method based on an estimated useful life of nine years and an estimated residual value of $10,000.
Required -
a. What was the depreciation for the first year?
b. Assuming that the equipment was sold at the end of the second year for $78,000, determine the gain or loss on the sale of the equipment.
c. Journalize the entry to record the sale.
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