Anwer PR 9-4A Depredatdon by two methods aale of fixed aasset Obj. 2, 3 New lithographic equipment, acquired at a cost of $800,000 on March 1 at the beginning of a fiscal year, haz an estimated useful life of five years and an estimated residual vahue of $90,000. The manager requested information regarding the effect of altenative methods on the amount of depreciation expense each year. CEL TEMPLATE In the first week of the fifth year, on March 4, the equipment was sold for $135,000 Instructions L Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (A) the straight-line method and (B) the double-declining-balance method. The following columnar headinga are suggested for each schedule: Year Depreciation Accumulated Book Value, End of Year Expense Depreciation. End of Year Check Figure: B. Year 1: $320,000 depreciation expense 2. Journalize the entry to record the sale assuming the manager chose the double-declining- balance method. 3. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $88,750 instead of $135,000 Transactions for fixed assets, including sale Obj. 1, 2, 3 The following transactions, and adjusting entries were completad by Legacy Funiture Co. during a three-year period All are