1. ABC Company purchased a piece of equipment with a purchase price of 553,000on laly 1 of Year 1. Tbey paid 55,000 sales tak and 53,000 for shipping. The cont to incall the equipment was 52,000 . The salvage valuo is expected to be 515,000 and useful hife is expectod to be 6 years. Calculate depreciation under the following assumptions: (a) ABC Company uses the straight line method of deprociation. (b) If this machine is sold on October 1 of Year 4 for 515,000 , what is the gain of loss on this sale? (c) ABC Company uses the double declining method of degreciation. (round to the nearest dollar) 2. On April I of Year I, ABC Company purchased a company car with a cost of 540,000 and a useful life of 100,000 miles with a salvage value at that time of 515,000 . The car was driven 20,000 miles in Year 1 and 50,000 miles in Year 2 . In Year 3 , it was decided that the car would only last 20,000 more miles and the salvage valoe at that time would only be $5,500. The car was driven 15,000 miles is Year 3 and 6,000 miles in Year 4 . It was sold for 54,800 at that tirne. Prepare all of the journal entries need from purchase to sale for this cat. fos anling the porchtse ia given tolis- 4. ABC Coengany parthand a pioce of aywipeneat with a porthaie price of 566,000 oe daha+y. 1 of Year 1. They pald 53,400 selles tar and $1,400 foe shipging. The aalvage aalie is expected to be 5 to.000 and aseful hife ix eppected to bo 5 years. Propare the pourmal ectey fo this tesagmsert if: (a) AHC Contpany une the stragha line meptbod of acpinciatioe asd the equipenent is sotd for 516000 oo Mlay 1, Year 4. (b) ABC Company uses the doeble decliang anethod of doprcoution and the ecuipmedt is sold oo December 31, Year 4 for 515,000 . 5. Oo fanuary 1. ABC paid ligel fecs of 515,000 foe the repistation of a fatcet. The le pil tife: at regiatration was 20 yeaf and the aseful life was eitimaled to be 3 ycar. At the beginning of Year 2, ABC mpent 56,000 to seccesfully defend the pateat in a laweuit. Prefare the journal enenies for thin pateat from purchase to the ead of ifs urefoll life