CengageNOWv2 | Online teach X Losses on discarding fixed asse X Chegg Search C v2.cengagenow.com/ilrn/takeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession Locator=&inprogress=false HW Ch07 200 eBook Equipment acquired on January 9, 20Y3, at a cost of $637,000, has an estimated useful life of 19 years, an estimated residual value of $101,920, and is depreciated by the straight-line method. a. What was the book value of the equipment at the end of the fifth year, December 31, 20Y7? Round your interim calculations and final answer to the nearest dollar. $ 496,190 For decreases in accounts or outflows of cash, enter your answers as negative numbers. Round annual depreciation to the nearest dollar and use this amount in your follow-on calculations. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. b1. Assuming that the equipment was sold on July 1, 20Y8, for $191,100, illustrate the effects on the accounts and financial statement of depreciation for the six months until the sale date. Statement of Cash Flows No effect Balance Sheet Assets = Liabilities + Accumulated depreciation - equipment = No effect 0 -14,081 0 July 1. Statement of Cash Flows No effect 0 Income Stockholders' Equity Statement Retained earnings -14,081 Income Statement Depreciation expense b2. Assuming that the equipment was sold on July 1, 20Y8, for $191,100, illustrate the effects on the accounts and financial statement of the sale of the equipment. Statement of Cash Flows July 1. Balance Sheet Assets Liabilities + Cash + Equipment Accumulated depreciation - equipment = No effect 191,100 -637,000 0 Statement of Cash Flows Investing Check My Work Assignment Score: 97.22% 191,100 All work saved. 14,081 Stockholders' Equity Income Statement Retained earnings x Income Statement Loss on disposal of fixed Assets Previous Next Email Instructor Save and Exit Submit Assignment for Grading