Equipment was acquired at the beginning of the year at a cost of $324,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of eight years and an estimated residual value of $43,000. What was the depreciation for the first year? Assuming the equipment was sold at the end of the second year for $200,000, determine the gain or loss on the sale of the equipment. Journalize the entry to record the sale. A printing press priced at a fair market value of $300,000 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press. Assuming that the trade-in allowance is $120,000, what is the amount of cash given? Assuming that the book value of the press traded in is $115,500, what is the gain or loss on the exchange?​
