$1.$ Use the balance sheet equation to analyze the transactions in the $$Property & equipment, at cost$$ and $$Accumulated depreciation and amortization$$ accounts for the period September $3,1995$ to August $31,1996.$ Begin by entering the beginning and ending balances of these accounts. Then determine the increases and decreases in the accounts due to the following events:

i$.$ The purchase of new property and equipment in fiscal $1996.$

ii$.$ Depreciation for fiscal $1996.$

iii. The sale of property and equipment in fiscal $1996.($According to the statement of cash flows, Frederick$$s of Hollywood received proceeds on the sale of fixed assets amounting to $$7,000$ in fiscal $1996$ and recorded a loss of $$84,000$ on this disposal. Using this information to calculate the decrease in $$Property & equipment, at cost$$and the increase in $$Accumulated depreciation and amortization$$ accounts.

$2.$ Assume the fixed assets purchased during fiscal $1996$ have an expected useful life of $5$ years and a salvage value of $$573,000.$ Prepare a balance sheet equation worksheet to show the $($a$)$ cost$,($b$)$ accumulated depreciation, $($c$)$ book value, and $($d$)$ depreciation expense of this equipment for each fiscal year over its expected life, assuming a full$-$year deprecation is taken in fiscal $1996$ and the company uses:

i$.$ Straight$-$line depreciation.

ii$.$ Double declining balance depreciation.

$3.$ Calculate the fixed asset turnover ratio, which measures the efficiency with which management is using its invested capital, for fiscal $1995$ and $1996.$ The formula is: Fixed Asset Turnover $=$ sales $/$ average fixed assets