1/ An asset acquired January 1, 2018, for $14,300 with an estimated 10-year life and no residual value is being depreciated in an equipment group asset account that has an average service life of eight years. The asset is sold on December 31, 2019, for $5,400. The entry to record the sale would be:

Multiple Choice

• Cash	5,400
  Accumulated depreciation	8,900
  Equipment		14,300

• Cash	5,400
  Accumulated depreciation	3,575
  Loss on sale of equipment	5,325
  Equipment		14,300

• Cash	5,400
  Loss on sale of equipment	8,900
  Equipment		14,300

• Cash	5,400
  Equipment		5,400

2/ Cutter Enterprises purchased equipment for $99,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $5,100.

Using the straight-line method, depreciation for 2019 and the equipment's book value at December 31, 2019, would be:

Multiple Choice

• $19,800 and $79,200 respectively.

• $18,780 and $61,440 respectively.

• $18,780 and $56,340 respectively.

• $39,600 and $59,400 respectively.