Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $562,500 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 $48,400. 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 $82,400. 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 Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year X X X X b. Double-declining-balance method Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year Year b. Double-declining-balance method Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year Year X X Feedback Check My Work Asset cost minus residual value equals depreciable cost. Sum the yearly depreciation to determine total depreciation. In the first year, the balance in the accumulated depreciation account is zero. Remember not to reduce book value below residual value. 2. Journalize 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. Cash 114,400 x Accumulated Depreciation Equipment Equipment