ces Morris Incorporated recorded the following transactions over the life of a piece of equipment purchased in Year 1: January 1, Year 1 December 31, Year 1 September 30, Year 2 December 31, Year 2 January 1, Year 3 December 31, Year 3 June 1, Year 4 December 31, Year January 1, Year 5 December 31, Year 51 October 1, Year 6 Required Purchased equipment for $14,000 cash. The equipment was estimated to have a five-year life and $6,290 salvage value and was to be depreciated using the straight-line method. Recorded depreciation expense for Year 1. Undertook routine repairs costing $777. Recorded depreciation expense for Year 2. Made an adjustment costing $3,150 to the equipment. It improved the quality of the output but did not affect the life and salvage value estimates. Recorded depreciation expense for Year 3. Incurred $361 cost to oil and clean the equipment. Recorded depreciation expense for Year 4. Had the equipment completely overhauled at a cost of $7,580. The overhaul was estimated to extend the total life to seven years. The salvage value did not change. Recorded depreciation expense for Year 5. Received and accepted an offer of $15,900 for the equipment. a. Use a horizontal statements model to show the net effects of these transactions on the elements of the financial statements. The first event is recorded as an example. b. Determine the amount of depreciation expense to be reported on the income statements for Year 1 through Year 6 c. Determine the book value (cost-accumulated depreciation) Morris will report on the balance sheets at the end of Year 1 through Year 5. d. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, Year 6. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D ces Use a horizontal statements model to show the net effects of these transactions on the elements of the financial statements. The first event is recorded as an example. Note: Use + for increase, for decrease, and leave blank for no effect. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity and FA for financing activity. Not all cells require input. MORRIS INCORPORATED Horizontal Statements Model Show less A Date January 01,Year 11 December 31, Year 1 September 30, Year 2 December 31, Year 2 January 01, Year 3 December 31, Year 3 June 01, Year 4 December 31, Year 4 January 01, Year 5 December 31, Year 5 October 01, Year 6 October 01, Year 6 Assets +/- Liabilities Stockholders Equity Net Income Statement of Cash Flows + IA + + + Heated A Required B > Year Expense Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year Book Value Year 1 Year 2 Year 3 Year 4 Year 5 Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, Year 6. Note: Round intermediate calculations and final answer to nearest dollar amount. Loss amount should be indicated with a minus sign, Morris Incorporated recorded the following transactions over the life of a piece of equipment purchased in Year 1: January 1, Year 1 December 31, Year 1 September 30, Year 2 December 31, Year 2. January 1, Year 3. December 31, Year 3 June 1, Year 4 December 31, Year January 1, Year 5 December 31, Year 51 October 1, Year 6 Required Purchased equipment for $14,000 cash. The equipment was estimated to have a five-year life and $6,290 salvage value and was to be depreciated using the straight-line method. Recorded depreciation expense for Year 1. Undertook routine repairs costing $777. Recorded depreciation expense for Year 2. Made an adjustment costing $3,150 to the equipment. It improved the quality of the output but did not affect the life and salvage value estimates. Recorded depreciation expense for Year 3. Incurred $361 cost to oil and clean the equipment. Recorded depreciation expense for Year 4. Had the equipment completely overhauled at a cost of $7,580. The overhaul was estimated to extend the total life to seven years. The salvage value did not change. Recorded depreciation expense for Year 5. Received and accepted an offer of $15,900 for the equipment. a. Use a horizontal statements model to show the net effects of these transactions on the elements of the financial statements. The first event is recorded as an example. b. Determine the amount of depreciation expense to be reported on the income statements for Year 1 through Year 6. c. Determine the book value (cost-accumulated depreciation) Morris will report on the balance sheets at the end of Year 1 through Year 5. d. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, Year 6. Complete this question by entering your answers in the tabs below.