1 a) Equipment was purchased on December 31, 2012 for $50,000. The assets is expected to last for four years, at which time the estimated resiudal value will be $10,000. Prepare a table showing the year, the cost of the asset, the amount of depreciation expense each year, accumulated depreciation to date and net book value. The company uses straight-line dep'n. 3 Marks Year Cost of Long-Term Asset Depreciation Expense Accumulated Dep'n to Date Net Book Value b) c) The asset was sold for $12,000 cash on the first day of 2017. Prepare journal entry to record the sale. Account Title and Explanation Date Using the same purchase information at the beginning of the question, prepare the table assuming that the company used double-declining balance approach for depreciation and the asset has no residual value. Year 2 marks Debit Credit Cost of Long-Term Asset Depreciation Expense Accumulated Dep'n to Date Net Book Value 3 Marks 7 9 0 8 Q-2 Prepare horizontal analysis for the following extract of Income Statement Particulars Current Year Previous Ye: Change in Am % change -1 Sales revenue 730,000 680,000 -2 Cost of goods sold 350,000 325,000 -3 Gross Profit 380,000 355,000 -4 5 6 2 Marks