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 Question Content Area 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 Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year 1 $fill in the blank fd04fb04a004fe4 1 $fill in the blank fd04fb04a004fe4 2 $fill in the blank fd04fb04a004fe4 3 2 $fill in the blank fd04fb04a004fe4 4 $fill in the blank fd04fb04a004fe4 5 $fill in the blank fd04fb04a004fe4 6 3 $fill in the blank fd04fb04a004fe4 7 $fill in the blank fd04fb04a004fe4 8 $fill in the blank fd04fb04a004fe4 9 4 $fill in the blank fd04fb04a004fe4 10 $fill in the blank fd04fb04a004fe4 11 $fill in the blank fd04fb04a004fe4 12 5 $fill in the blank fd04fb04a004fe4 13 $fill in the blank fd04fb04a004fe4 14 $fill in the blank fd04fb04a004fe4 15 b Double declining balance method Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year 1 $fill in the blank fd04fb04a004fe4 16 $fill in the blank fd04fb04a004fe4 17 $fill in the blank fd04fb04a004fe4 18 2 $fill in the blank fd04fb04a004fe4 19 $fill in the blank fd04fb04a004fe4 20 $fill in the blank fd04fb04a004fe4 21 3 $fill in the blank fd04fb04a004fe4 22 $fill in the blank fd04fb04a004fe4 23 $fill in the blank fd04fb04a004fe4 24 4 $fill in the blank fd04fb04a004fe4 25 $fill in the blank fd04fb04a004fe4 26 $fill in the blank fd04fb04a004fe4 27 5 $fill in the blank fd04fb04a004fe4 28 $fill in the blank fd04fb04a004fe4 29 $fill in the blank fd04fb04a004fe4 30 Question Content Area 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 blank CashDepreciation Expense EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment Select Select Accumulated Depreciation EquipmentDepreciation Expense EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment Select Select Accumulated Depreciation EquipmentCashDepreciation Expense EquipmentEquipmentLoss on Sale of Equipment Select Select Accumulated Depreciation EquipmentBuildingsDepreciation Expense EquipmentGain on Sale of EquipmentLoss on Sale of Equipment Select Select Question Content Area 3 Journalize the entry to record the sale in (2) assuming that the equipment was sold for $70,700 instead of $82,400 If an amount box does not require an entry, leave it blank blank Accounts PayableCashDepreciation Expense EquipmentEquipmentGain on Sale of Equipment Select Select Accounts ReceivableAccumulated Depreciation EquipmentDepreciation Expense EquipmentEquipmentGain on Sale of Equipment Select Select Accounts PayableDepreciation Expense EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment Select Select Accumulated Depreciation EquipmentCashDepreciation Expense EquipmentEquipmentGain on Sale of Equipment Select Select

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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

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:

Question Content Area

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

Year	Depreciation Expense	Accumulated Depreciation, End of Year	Book Value, End of Year
1	$fill in the blank fd04fb04a004fe4_1	$fill in the blank fd04fb04a004fe4_2	$fill in the blank fd04fb04a004fe4_3
2	$fill in the blank fd04fb04a004fe4_4	$fill in the blank fd04fb04a004fe4_5	$fill in the blank fd04fb04a004fe4_6
3	$fill in the blank fd04fb04a004fe4_7	$fill in the blank fd04fb04a004fe4_8	$fill in the blank fd04fb04a004fe4_9
4	$fill in the blank fd04fb04a004fe4_10	$fill in the blank fd04fb04a004fe4_11	$fill in the blank fd04fb04a004fe4_12
5	$fill in the blank fd04fb04a004fe4_13	$fill in the blank fd04fb04a004fe4_14	$fill in the blank fd04fb04a004fe4_15

b. Double-declining-balance method

Year	Depreciation Expense	Accumulated Depreciation, End of Year	Book Value, End of Year
1	$fill in the blank fd04fb04a004fe4_16	$fill in the blank fd04fb04a004fe4_17	$fill in the blank fd04fb04a004fe4_18
2	$fill in the blank fd04fb04a004fe4_19	$fill in the blank fd04fb04a004fe4_20	$fill in the blank fd04fb04a004fe4_21
3	$fill in the blank fd04fb04a004fe4_22	$fill in the blank fd04fb04a004fe4_23	$fill in the blank fd04fb04a004fe4_24
4	$fill in the blank fd04fb04a004fe4_25	$fill in the blank fd04fb04a004fe4_26	$fill in the blank fd04fb04a004fe4_27
5	$fill in the blank fd04fb04a004fe4_28	$fill in the blank fd04fb04a004fe4_29	$fill in the blank fd04fb04a004fe4_30

Question Content Area

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.

blank	CashDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated Depreciation-EquipmentDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentEquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated Depreciation-EquipmentBuildingsDepreciation Expense-EquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -

Question Content Area

3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $70,700 instead of $82,400. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableCashDepreciation Expense-EquipmentEquipmentGain on Sale of Equipment	- Select -	- Select -
	Accounts ReceivableAccumulated Depreciation-EquipmentDepreciation Expense-EquipmentEquipmentGain on Sale of Equipment	- Select -	- Select -
	Accounts PayableDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of Equipment	- Select -	- Select -
	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentEquipmentGain on Sale of Equipment	- Select -	- Select -