On July 1, 2010, Hale Kennels sells equipment for $66,000. The equipment originally cost $180,000, had an estimated 5-year life and an expected salvage value of $30,000. The accumulated depreciation account had a balance of $105,000 on January 1, 2010, using the straight-line method. The gain or loss on disposal is

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The book value of the equipment on July 1, 2010, is $180,000 - $105,000 - ($15,000 depreciation for half a year) = $60,000. Selling it for $66,000 results in a $6,000 gain.

On July 1, 2010, Hale Kennels Sells Equipment for $66,000