ABC Ltd acquired equipment at a cost of $120,000 three years ago.

The following data pertain to the equipment:

The estimated useful life is 12 years.

The remaining useful life is 9 years.

The equipment has no residual value.

Other information:

ABC Ltd can sell the equipment at $88,000 and the current cost of disposal is $7,000 at the end of year 3.

The equipment has 9-year remaining life, which is expected to reduce operating costs by $12,000 per year.

Shareholders of ABC Ltd expect an 8% discount rate.

1) The carrying amount of the equipment at the end of year 3 is:

2) The net selling price of the equipment at the end of year 3 is:

3) The net selling price of the equipment at the end of year 3 is:

4) The value in use of the equipment at the end of year 3 is:

5) The recoverable amount of the equipment at the end of year 3 is: