Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $718,750 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $61,800. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On March 4 of Year 5, the equipment was sold for $105,300. Required: 1. Determine the annual depreciation expense 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 the following methods: a. Straight-line method Book Value, Depreciation Expense Accumulated Depreciation, End of Year Year End of Year 1 2 S $ $ 3 S 4 s $ $ S s $ b. Double-declining-balance method Accumulated Depreciation, Book Value, Depreciation Expense Year End of Year End of Year 1 $ 2 S $ $ 3 s $ $ 4 s 5 s $ $ 2. Joumalize the entry to record the sale assuming that the manager chose the double-declining balance method. 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 $90,400 instead of $105,300. If an amount box does not require an entry, leave it blank