Crane Co. purchased equipment on March 1, 2019, for $105,000 on account. The equipment had an estimated useful life of ten years, with a residual value of $5,000. Crane Co. uses the diminishing-balance method of depreciation with a 20% rate and calculates depreciation for partial periods to the nearest month. The company has an August 31 year end.

Required:

a) Record the acquisition of the equipment on March 1, 2019

b) Record depreciation at August 31, 2019, 2020, and 2021

c) Record the disposal on September 1, 2021, under the following separate and unrelated scenarios:

i) It was scrapped, with no residual value ii) It was sold for $55,000 iii) It was sold for $45,000