Curto Inc, purchased new furniture for its store on June $1,2023.$ The furniture is expected to have a $5-$year life and a residual value of $$1,000.$ The following expenditures were associated with the purchase:

Cost of the furniture $$18,000$

Freight charges $950$

Sales taxes $1,080$

Installation of furniture $470$

Cost to repair furniture $600$

Instructions:

a$)$ Compute depreciation expense for the years $2023$ through $2028$ under each

depreciation method listed:

$1)$ Straight$-$line, with fractional years rounded to the nearest whole month

$2)200$ percent declining$-$balance

$3)150$ percent declining$-$balance

b$)$ Assume that Davidson, DDS$,$ sold the old furniture that was being replaced. The old furniture had originally cost $$3,000,$ and its book value at the time of the sale was $$400.$Record the sale of the old furniture under each of the following conditions:

$1)$ The furniture sold for $$780$ cash

$2)$ The furniture sold for $$250$ cash