On January 1, 2006, Bertrand Corporation purchased equipment for $76,000, which had a useful life of ten years and an estimated residual value of $4,000.Bertrand has recorded monthly depreciation of the equipment on the straight-line method.On December 31, 2014, the equipment was sold for $14,000.As a result of this sale, Bertrand should recognize a gain of:

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The equipment's original cost was $76,000 with a residual value of $4,000, giving a depreciable base of $72,000 over ten years. Annually, this results in $7,200 depreciation ($72,000 / 10 years). Over nine years (by the end of 2014), total depreciation is $64,800 ($7,200 * 9). The book value at the time of sale is $11,200 ($76,000 - $64,800). Selling the equipment for $14,000 results in a gain of $2,800 ($14,000 - $11,200).

On January 1, 2006, Bertrand Corporation Purchased Equipment for $76,000