5 DEPRECIATION AND DISPOSAL oF FIXED ASSETS Comparison of Depreciation Methods es Construetion Co. purchased a new crane for $350, 000 at the beginning of 2017. The crane has an estimated residual value of $42,000 and an Niles estimated 100,000 hours. veuzs It was used tor 15,000 hours in year 1, 18,000 hours in useful life of eight (8) years. The crane is expected to last year 2 and 25,000 hours in year 3. Compute t the first three (3) years under each of the following methods : he annual depreciation and carrying value for the new crane for a) Straight-line method (3 points) b) Units of activity (production) method (3 points) e) Declining balance method (3 points) d) The machine is sold for $150,000 on January 2, 2020 Calculate the gain or loss using the value on sale date under the declining balance method. (2 points) e) Prepare the journal entry to record the sale on January 2, 2020 (2 points)