5. At the beginning of the year, a company purchases equipment for $130,000 with an estimated salvage value of $5,000 and an estimated useful life of 10-years. a. Record the first year of depreciation assuming the company uses the straight-line method of depreciation: (4 points) Description/Account Debit Credit Illustrate how the above entry(ies) will affect the accounting equation (amounts and direction): Assets Liabilities Owner's Equity Page 3 of 12 b. Assume the equipment was sold at the end of the 6th year for $52,000. Journalize the entry to record the sale: (8 points) Description/Account Debit Credit Illustrate how the above entry(ies) will affect the accounting equation (amounts and direction): Assets Liabilities Owner's Equity c. Instead of selling the equipment, assume at the beginning of the 7th year, the company retrofits (improves) the equipment for new capabilities at the cost of $10,000. Journalize the entry for the improvement: (3 points) Description/Account Debit Credit Illustrate how the above entry(ies) will affect the accounting equation (amounts and direction): Assets Liabilities Owner's Equity