Leroy Bowden and Bill Hu each ran their own automotive repair shop. On January 2, 2004, each of them bouth a new hydraulic vehicle lift costing $10,000. Each of the lifts was expected to have an 8 year life and a $2000 residual value. Bowden Auto repair used stairght line depreciation and Hu Automotive Service used the double declining balance method. At the end of the 3 years, each of the sold their lifts for $5500.

a. Compute the depreciation for both Bowden and Hu throught the third year.
b. Compute the gain or loss that each would recognize on the sale of their machine
c. If the gain or loss is different for each of them, explain why.