Chapter 10 Grace Company owns equipment that cost $70,000 when purchased on January 1, 2014. It has been depreciated using the straight-line method based on estimated salvage value of $7,000 and an estimated useful life of 5 years. Instructions: Prepare Grace Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (a) Sold for $40,000 on January 1, 2017. (b) Sold for $40,000 on April 1, 2017. (c) Repeat (a), assuming Grace uses double-declining balance depreciation. (d) Repeat (b), assuming Grace uses double-declining balance depreciation