ABC Co. purchases equipment with a cost of $280,000 on January 1, 2021. ABC paid cash. The equipment has no salvage value. The useful life is 10 years.

a. Record the journal entry for the purchase of the equipment.

b. Calculate the depreciation for the first year, 2021, using straight line depreciation and record the appropriate journal entry.

c. What is the book value after the 2021 entry for depreciation?

d. Calculate the depreciation for 2022, using straight line depreciation and record the appropriate journal entry.

e. What is the book value after the 2022 entry for depreciation?