Assignment 1 CLO 1 Devar Company incurred the following expenditures to acquire an equipment: Purchase price $55,000, delivery expenses $5.000, fixing and testing $3,000, transit insurance $1.000, annual maintenance $2,000, sales commissions $1,000, annual insurance expense S2.000. and operating fuel and lubricants S1,000. The equipment started operations on January 1, 2016. It has been depreciated using the straight-line method based on estimated salvage value of $5,000 and an estimated useful life of 6 years. Instructions 3. Prepare Devar Company's journal entries to record transactions under four independent situations: a. Retired the equipment at the end of the fourth year (Dec. 31. 2019). (2 marks) b. Sold the equipment for $38,000 cash on December 31, 2018 (2 marks) c. Sold the equipment for $25,000 Cash on July 1. 2019. (2 marks) d. On January 1, 2019, exchanged the old equipment, which had a fair value of $40,000 with a new equipment and paid $10,000 cash. (2 marks)