ACCT 201 Class Activity 7 NAME On January 2, 2012, Whitehurst Manufacturing Co. purchased and installed equipment with a total cost of $385,000 and an estimated life of eight years. The company uses the straight-line method of depreciation and expects the equipment to have a $25,000 salvage value. On October 1, 2021, the equipment was sold for $20,000. At the time of sale, the following entries were recorded. Date Account Description Debit Credit 10/1/2021 No Entry Needed 10/1/2021 Cash 20,000 Accumulated Depreciation 360,000 Equipment 385,000 a. How long did Whitehurst own the equipment? (Years, months) b. What is the annual depreciation expense using the straight-line method? c. Briefly explain why no entry was needed to record additional depreciation expense at the time of sale. d. What was the book value of the equipment sold? e. Would Whitehurst record a gain or a loss on the sale of Equipment? f. How much was the gain or loss on the sale of equipment? If g. Is the 10/1/2021 entry to record the sale of the equipment complete? not, what is missing? (Account, amount, debit/credit)