1. Disposal of Fixed Asset Equipment acquired on January 8, 20Y1, at a cost of $280,000, has an estimated useful life of 8 years and an estimated residual value of $30,000. a. What was the annual amount of depreciation for the years 20Y1, 2012, and 20Y3, using the straight-line method of depreciation? Depreciation expense 20Y1 $ 20Y2 $ 20Y3 $ b. What was the book value of the equipment on January 1, 20Y4? c. Assuming that the equipment was sold on January 7, 2014, for $185,000, illustrate the effects on the accounts and financial statements of the sale. Jan. 7. Balance Sheet Assets = Liabilities + Stockholders' Equity Cash + Equipment - Statement of Cash Flows: Income Statement Accumulate d depreciatio = No effect n- equipment Retained earnings