Depreciation by two methods; sale of fixed asset Instructions Chart of Accounts Starting Questions Journal E Instructions X New lithographic equipment, acquired at a cost of $800,000 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount depreciation expense each year. In the first week of the fifth year, on March 4, the equipment was sold for $135,000. Required: 1. Determine the annual depreciation exponse for each of the estimated five 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 (a) the straight-line method and (b) the double-declining-balance method. 2. Joumalize the entry to record the sale assuming the manager chose the double-declining-balance method. Refer to the Chart Accounts for exact wording of account titles. 3. Joumalize the entry to record the sale in (2), assuming that the equipment was sold for $88,750 instead of $135,000. Refer to the Chart of Accounts for exact wording account titles