2. The following equipment was purchased July 1, 2016. Initial Cost Expected Useful Life Expected Salvage Value $595,000 5 years $70,000 Record depreciation expense for 2016 using the straight-line method. Assets Liabilities Stockholders' Equity b What is the book value of the equipment at December 31, 2016 after depreciation has been recorded? C. Record depreciation expense for 2017 using the straight-line method. Assets Liabilities Stockholders' Equity d. The equipment sold for $219,500 on July 1, 2020. The Accumulated Depreciation account had a balance of $367,500 on December 31, 2019. What is the book value of the equipment on the date of sale? (Hint: need to record depreciation expense from last adjustment to the date of sale "catch-up entry") e. What is the gain or loss on sale? What is the transaction to record the sale? Assets Liabilities Stockholders' Equity