A depreciation schedule for heavy equipment of Beniluz Road Construction Company was requested by your auditor soon after December 31, 2021, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2018 to 2021, inclusive. The following data were ascertained: Balance of Equipment account, Jan. 1, 2018 Equipment No. 1 purchased Jan. 1, 2015, cost $ 50,000 Equipment No. 2 purchased July 1, 2015, cost 60,000 Equipment No. 3 purchased Jan. 1, 2016, cost 55,000 Equipment No. 4 purchased July 1, 2017, cost 70,000 Balance, Jan. 1, 2018 $235,000 The Accumulated DepreciationEquipment account previously adjusted to January 1, 2018, and entered in the ledger, had a balance on that date of $89,000 (depreciation on the four pieces of equipment from the respective dates of purchase, based on a 5-year life, no salvage value). No charges had been made against the account before January 1, 2018. Transactions between January 1, 2018, and December 31, 2021, which were recorded in the ledger, are as follows: Jan. 1, 2019 Equipment No. 1 was sold for $6,000 cash; entry debited Cash and credited Equipments, $6,000. July 1, 2019 Equipment No. 2 was traded for a larger one (No. 5), the agreed purchase price of which was $80,000. Beniluz Road Construction Co. paid the dealer $66,000 cash on the transaction. The entry was a debit to Equipment and a credit to Cash, $66,000. The transaction has commercial substance. July 1, 2020 Equipment No. 3 was damaged in a wreck to such an extent that it was sold as junk for $500 cash. Beniluz Road Construction Co. received $12,000 from the insurance company. The entry made by the bookkeeper was a debit to Cash, $12,500, and credits to Miscellaneous Income, $500, and Equipment, $12,000. July 1, 2021 A new Equipment (No. 6) was acquired for $92,000 cash and was charged at that amount to the Equipment account. Entries for depreciation had been made by the bookkeeper at the close of each year as follows: 2018, $47,000; 2019, $42,600; 2020, $32,700; 2021, $35,400.

1.Calculate for each equipment (#1, #2, #3, #4) the annual depreciation. Total the annual depreciation for all equipment.

2.For Equipment #1, calculate the gain or loss on the sale of the equipment on Jan 1, 2019.

3. For Equipment #2 calculate its fair value at Jan 1, 2019, the date of the trade.

4. For Equipment #2, what would have been the correct entry recorded on 1/1/19?

5. For Equipment #3 calculate the gain/loss on the sale and the receipt of insurance proceeds at 7/1/2020 Please show work !