Company Z purchased new earth moving equipment on September 1 , the beginning of its fiscal year, at a cost of $110,000. The company paid cash for the equipment. The equipment has an estimated useful life of 4 years or 62,500 operating hours and an estimated residual value of $7,500. The company's operations manager has requested information regarding the effect of alternative methods of depreciation in recording depreciation expense each year. The manager expects the equipment to be used as follows: Fiscal Year 1: 16,200 hours; Fiscal Year 2: 18,000 hours; Fiscal year 3: 15,000 hours; Fiscal Year 4:13,300 hours. During the first week of the fourth year of its useful life, on September 2,Y4, the equipment was sold for $38,000. Company Z collected the full sales price on the date of the sale. Instructions: 1. Determine the amount of depreciation expense for each of the estimated 4 years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year. Compute these amounts by (a) the straight-line method and (b) the units-ofactivity method. Report your work for each depreciation method using an excel schedule set up with the following headings: 2. Journalize the following entries related to this equipment: a. Record the purchase of the equipment on September 1,Y1 b. Record the depreciation expense for the first fiscal year ended August 31,Y2, assuming use of the straight-line method c. Record the depreciation expense for the second fiscal year ended August 31,Y3, 2. Journalize the following entries related to this equipment: a. Record the purchase of the equipment on September 1,Y1 b. Record the depreciation expense for the first fiscal year ended August 31, Y2, assuming use of the straight-line method c. Record the depreciation expense for the second fiscal year ended August 31,Y3, assuming use of the straight-line method d. Record the depreciation expense for the third fiscal year ended August 31,Y4, assuming use of the straight-line method e. Record the depreciation expense for the fourth fiscal year ended August 31, Y5, assuming use of the straight-line method 3. Assume that instead of keeping and using the equipment until the end of its useful life, the equipment was sold just after the end of Y3. Record the sale of the equipment on September 2, Y4, for $38,000 cash, assuming the straight-line method had been used for computing and recording depreciation. 4. Assume the equipment had been sold on September 2,Y, for $25,000 cash instead of $38,000. Assume the straight-line method had been used for computing and recording depreciation. Journalize the sale. Company Z purchased new earth moving equipment on September 1 , the beginning of its fiscal year, at a cost of $110,000. The company paid cash for the equipment. The equipment has an estimated useful life of 4 years or 62,500 operating hours and an estimated residual value of $7,500. The company's operations manager has requested information regarding the effect of alternative methods of depreciation in recording depreciation expense each year. The manager expects the equipment to be used as follows: Fiscal Year 1: 16,200 hours; Fiscal Year 2: 18,000 hours; Fiscal year 3: 15,000 hours; Fiscal Year 4:13,300 hours. During the first week of the fourth year of its useful life, on September 2,Y4, the equipment was sold for $38,000. Company Z collected the full sales price on the date of the sale. Instructions: 1. Determine the amount of depreciation expense for each of the estimated 4 years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year. Compute these amounts by (a) the straight-line method and (b) the units-ofactivity method. Report your work for each depreciation method using an excel schedule set up with the following headings: 2. Journalize the following entries related to this equipment: a. Record the purchase of the equipment on September 1,Y1 b. Record the depreciation expense for the first fiscal year ended August 31,Y2, assuming use of the straight-line method c. Record the depreciation expense for the second fiscal year ended August 31,Y3, 2. Journalize the following entries related to this equipment: a. Record the purchase of the equipment on September 1,Y1 b. Record the depreciation expense for the first fiscal year ended August 31, Y2, assuming use of the straight-line method c. Record the depreciation expense for the second fiscal year ended August 31,Y3, assuming use of the straight-line method d. Record the depreciation expense for the third fiscal year ended August 31,Y4, assuming use of the straight-line method e. Record the depreciation expense for the fourth fiscal year ended August 31, Y5, assuming use of the straight-line method 3. Assume that instead of keeping and using the equipment until the end of its useful life, the equipment was sold just after the end of Y3. Record the sale of the equipment on September 2, Y4, for $38,000 cash, assuming the straight-line method had been used for computing and recording depreciation. 4. Assume the equipment had been sold on September 2,Y, for $25,000 cash instead of $38,000. Assume the straight-line method had been used for computing and recording depreciation. Journalize the sale