Assume that Gonzalez Company purchased an equipment on January 1, 2014, for $150,000. The equipment had an estimated life of six years and an estimated residual value of $15,000. The company used the...

Assume that Gonzalez Company purchased an equipment on January 1, 2014, for $150,000. The equipment had an estimated life of six years and an estimated residual value of $15,000. The company used the straight-line method to depreciate the equipment. On July 1, 2016, the equipment was told for $97,500 Required: 1. Make the joumal entry to record depreciation on the equipment through uy 1, 2016. Record the sale of the asset on July 1, 2016 2. How should the gain or loss on the sale of the asset be presented on the income statement?