26. Champion Company purchased and installed carpet in its new general offices on March 30 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value. a. Prepare the journal entries necessary for recording the purchase of the new carpet. b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet assuming that Champion Company uses the straight-line method. 27. Equipment acquired on January 2, 2011 at a cost of $273,500 has an estimated useful life of eight years and an estimated residual value of $35,500. Required: (1) What was the annual amount of depreciation for the years 2011, 2012, and 2013, assuming the straight-line method of depreciation is used? (2) What was the book value of the equipment on January 1, 2014? (3) Assuming that the equipment was sold on January 2, 2014, for $170,500, journalize the entry to record the sale. (4) Assuming that the equipment had been sold on January 2, 2014, for $189,000 instead of $168,500, journalize the entry to record the sale. Problem 28. Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of 5 years, or 14,000 operating hours, and a residual value of $10,000. Compute the depreciation for the first and second years of use by each of the following methods: (a) straight-line (b) units-of-production (1,200 hours first year; 2,250 hours second year) (c) declining-balance at twice the straight-line rate (Round the answer to the nearest dollar.) 29. Computer equipment (office equipment) purchased 6 1/2 years ago for $170,000, with an estimated life of 8 years and a residual value of $10,000, is now sold for $60,000 cash. (Appropriate entries for depreciation had been made for the first six years of use.) Journalize the following entries: (a) Record the depreciation for the one-half year prior to the sale, using the straight-line method. (b) Record the sale of the equipment. (c) Assuming that the equipment had been sold for $25,000 cash, prepare the entry for (b) above to record the sale. 30. Equipment acquired at a cost of $126,000 has a book value of $42,000. Journalize the disposal of the equipment under the following independent assumptions. a. The equipment had no market value and was discarded. b. The equipment is sold for $54,000. c. The equipment is sold for $24,000. d. The equipment is traded-in for a similar asset. The list price of the new equipment is $63,000. The buyer gave no cash in the exchange. The transaction lacks commercial substance. a. prepare the journal entries necessary for recording the purchase of the new carpet. b. record the Dec. 31 adjusting entry for the partial-year deprecation expense for the carpet assuming that champion company uses the straight-line method