Ao enter the purement 5.000.000 on senuary 1. year 1. The equipment is expected to have a Use the following to answer questions 18 - 19 year life, with a residual value of $100,000 at the end of its service de 16. S Using the 1901-declining balance method, determine depreciation expense for year 2 19. S Using the straight-line method, determine book value at the end of year 2 Use the following to answer questions 20-22 A Construction is in the process of closing its operations. It sold its 5-year-old Caterpillar 279C Compact Track Loader for $98,000. The loader originally cost $150,000 and had an estimated useful life of 10 years and an estimated residual value of $35,000. The company uses straight-line depreciation for all equipment. 20.5 Calculate the book value of the loader at the end of the Sth year. 21. S What was the gain or loss on the sale of the loader at the end of the Sth year; (if loss, put - in front of your answer). 22. Record the sale of the loader at the end of the 5th year. continued on the next page