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:

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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

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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 -

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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 -