Journal Entries for Depreciation (Alternates are 8-31 and 8-32.) The Coca-Cola Company's balance sheet of December 31, 2003 included the following (S in millions): Property, plant, and equipment Less allowances for depreciation $9,622 3,525 $6,097 Note that the company uses "allowances for" instead of "accumulated" depreciation. Assume that on January 1, 2004, Coca-Cola acquired some new bottling equipment for $1.8 million cash. The equip- ment had an expected useful life of 5 years and an expected residual value of $300,000. Coca-Cola uses straight-line depreciation. 1. Prepare the journal entry that Coca-Cola would make annually for depreciation on the new equipment. 2. Suppose Coca-Cola sold some of the equipment they had purchased on January 1, 2004. The equipment being sold had an original cost of $60,000 and an expected residual value of $5,000. Coca-Cola sold the equipment for $32,000 cash 2 years after the purchase date. Prepare the jour- nal entry for the sale 3. Refer to requirement 2. Suppose Coca-Cola had sold the equipment for $40,000 cash, instead of $32,000. Prepare the journal entry for the sale.