Equipment was acquired at the beginning of the year at a cost of $36,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $700.

Question Content Area
a. What was the depreciation for the first year?
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b. Assuming the equipment was sold at the end of year 2 for $8,860, determine the gain or loss on the sale of the equipment.
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