Conok company has a fiscal year ending on Dec 31 each year. The company purchased (on April 1, 2015) equipment with a total cost of $600,000, estimated useful life of 8 years, and estimated salvage value of $80,000. On Jan 1, 2017, the company automated the equipment at a cost of $100,000 to facilitate 24 hours operations. This doubled production of the asset but the useful life was decreased by 2 year.

a. Prepare a depreciation to calculate the depreciation expense and the accumulated depreciation each year using the double declining balance method

b. Assume that on December 31,2018, the company sold the equipment for $300,000. Record the journal entry that the company would have made on that date