On July 1, 2022, Happy Hound Kennels Inc.sells equipment for $20,000.The equipment originally cost $80,000, had an estimated 5-year life and an expected residual value of $10,000.The Accumulated Depreciation account had a balance of $49,000 on January 1, 2022, 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, 2022, is $80,000 - $49,000 - ($80,000 - $10,000)/5 * 0.5 = $31,000. Selling it for $20,000 results in a $11,000 loss.