At the beginning of 2017, your company buys a $30,000 piece of equipment that it expects to use for 10 years. The equipment has an estimated residual value of $2,000.

The annual regular maintenance expenses on the equipment is $850.

On April 30, 2020 the company sold the equipment for $7,200 cash.

Required:

1. Assume that the company uses the double declining depreciation method, What is the entry on April 30, 2020. (10 marks)
2. Assume that the company uses the straight line depreciation method, What is the entry on April 30, 2020. (5 marks)