Cost of $717,500, has an estimated useful life of 15 years and an estimated residual value of $100,450. Depreciation expense is 41,137 and the book value is 594,089.

d. Assuming that the equipment was sold on January 7, 20Y4, for $968,625 instead of $287,000, illustrate the effects on the accounts and financial statements of the sale Balance Sheet Statement of Income Assets Liabilities + Stockholders' Equity = Cash Flows Statement Cash + Equipment - Accumulated depreciation-equipment = No effect Retained earnings Jan. 7. 968,625V 681,625 X Statement of Cash Flows Income Statement Investing 968,625 Gain on disposal of fixed assets681,625 X