1) Using a T-account, show how to estimate the depreciation expense for 2021.

2) Using a T-account, show how to reconcile the Retained Earnings account.

The Murdock Corporation (MC) reported the following balance sheet data for 2022 and 2021: Additional information for 2022: (1.) Sold available-for-sale debt securities costing $69,500 for $74,000. (2.) Equipment costing $20,000 with a book value of $5,000 was sold for $6,000. (3.) Issued 6% bonds payable at face value, $200,000. (4.) Purchased new equipment for $145,000 cash. (5.) Paid cash dividends of $20,000. (6.) Net income was $50,000