Costanza Construction Corp. ("CCC") issued a purchase order to buy an excavator on July 15th, 2020 for $325,000. The excavator was shipped in from the U.S., at a freight cost of $5,000 and was received (and put into use) on August 1, 2020. The excavator is expected to have a useful life of 20 years, after which it will have a salvage value of $25,000. CCC has a December 31 year-end.

Required:

Assume CCC uses the straight-line method of deprecation. Provide the journal entry to record depreciation for the excavator at December 31, 2020. Assume CCC uses the double-declining balance method of deprecation. Provide the journal entry to record depreciation for the excavator at December 31, 2020. Assume once again that CCC uses the straight-line method of deprecation and that on August 1, 2022 the excavator was sold for $275,000 cash. Provide all appropriate journal entries for 2022 related to the disposal.