31 P9-4 A What is the amount of depreciation expense in 2022? \begin{tabular}{|l|l|} \hline A & $14,400 \\ \hline B & $15,500 \\ \hline C & $16,300 \\ \hline D & $16,700 \\ \hline \end{tabular} 32 P9-5A What is the equipment balance net of accumulated depreciation as of December 31, 2023? \begin{tabular}{c|l} \hline A & $31,925,000 \\ \hline B & $39,300,000 \\ \hline C & $40,150,000 \\ \hline D & $40,200,000 \end{tabular} D $40,200,000 P9.4A (LO 2), AP At the beginning of 2020, Mazzaro Company acquired equipment costing $120,000. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $12,000 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year. During 2022 (the third year of the equipment's life), the company's engineers reconsidered their expectations and estimated that the equipment's useful life would probably be 7 years (in total) instead of 6 years. The estimated salvage value was not changed at that time. However, during 2025 , the estimated salvage value was reduced to $5,000. Instructions Indicate how much depreciation expense should be recorded each year for this equipment, by completing the following table. 2026 depreciation expense $17,900 Journalize equipment transactions related to purchase, sale, retirement, and depreciation. P9.5A (LO 2, 3, 5), AP At December 31, 2022, Arnold Corporation reported the following plant assets. During 2023, the following selected cash transactions occurred. Apr. 1 Purchased land for $2,200,000. May 1 Sold equipment that cost $600,000 when purchased on January 1 , 2016. The equipment was sold for $170,000. June 1 Sold land for $1,600,000. The land cost $1,000,000. July 1 Purchased equipment for $1,100,000. Dec. 31 Retired equipment that cost $700,000 when purchased on December 31,2013 . No salvage value was received. Instructions a. Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2023 transactions.) Arnold uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement. b. Record adjusting entries for depreciation for 2023 . c. Prepare the plant assets section of Arnold's balance sheet at December 31,2023 . c. Tot. plant assets $50,037,500