b. The company has only one fixed asset (truck) that it purchased at the start of this year. That asset had cost $44,000, had an estimated life of five years, and is expected to have zero value at the end of the five years. c. The company has only one fixed asset (equipment that it purchased at the start of this vear. That asset had cost $32,000, had an estimated life of seven years, and is expected to be valued at $4.000 at the end of the seven years Accumulated depreciation Equipment Step 1: Determine what the current account balance equals $ 32,000 572 Step 2 Determine what the current account balance should Debitor Credit? Credit equal $ 4.000 4,000 Step 3 Record the December 31 adjusting entry to get from step 1 to step 2 Adjusting Entry Debit Depreciation expense-Equipment 5723 Accumulated depreciation Equipment Credit 5723