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 Accumulated Depreciation, Book Value, Depreciation Expense Year End of Year End of Year 1 2 3 $ 4 $ 5 $ b. Double-declining-balance method Depreciation Accumulated Depreciation, Book Value, Year Expense End of Year End of Year 1 2 3 4 $ $ 5 $ Feedback Check My Work 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 Accumulated Depreciation-Equipment Equipment Gain on Sale of Equipment 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. Cash Accumulated Depreciation Equipment Loss on Sale of Equipment Equipment