On March 31, 2021, management of Quality Appliances committed to a plan to sell equipment. The equipment was available for immediate sale, and an active plan to locate a buyer was initiated. The equipment had been purchased on January 1, 2019, for $260,000. The equipment had an estimated six-year service life and residual value of $20,000. The equipment was being depreciated using the straight-line method. Quality’s fiscal year ends on December 31.

Required:
1. Calculate the equipment’s book value as of March 31, 2021.
2. By December 31, 2021, the equipment has not been sold, but management expects that it will be sold in 2022 for $150,000. For what amount is the equipment reported in the December 31, 2021, balance sheet?