Entries for sale of fixed asset Obj. 3 Equipment acquired on January 8 at a cost of $212,000 has an estimated useful life of 15 years, has an estimated residual value of $14,000, and is depreciated by the straight-line method.

a. What was the book value of the equipment at December 31 the end of the fifth year?

b. Assuming that the equipment was sold on April 1 of the sixth year for $105,800, journalize the entries to record (1) depreciation for the three months until the sale date, and (2) the sale of the equipment.

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