Deprecation by Two Methods; Sale of Fixed Asset

New tire retreading equipment, acquired at a cost of $781,250 on September 1 at the beginning of a fiscal year, has an estimated useful life of 67,200. The manager requested regarding the effect of methods on the amount of depreciation expense each year. On the basis of the data presented to manager double-declining-balance method was selected in the week of the fifth year, on September 6, the equipment was sold for $114,400

Depreciation by Two Methods: Sale or Fixed Asset New tire retreading equipment, acquired at a cost of $781,250 on September I at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $67,200. The manager requested Information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining balance method was selected In the first week of the fifth year, on September 6, the equipment was sold for $114,400. Required: 1. Determine the annual depreciation expense for each of the estimated four years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods: a. Straight-line method Depreciation Accumulated Depreciation, Book Value, Expense End of Year End of Year Year 1 2 5 b. Double-declining balance method b. Double-declining-balance method Depreciation Expense Year Accumulated Depreciation, End of Year Book Value, End of Year 1 2 3 bull 4 llll 5 2. Joumalize the entry to record the sale, assoming double-declining balance method is used. If an amount box does not require an entry, leave it blank 3. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $98,200 instead of $114,400. If an amount box does not require an entry, leave it blank