Depreciation by Two Methods; Sale of Fixed Asset New tire retreading equipment, acquired at a cost of $906,250 on September 1 at the beginning of a fiscal year, has an estimated useful life of five years and estimated residual value of $77,900. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, on September 6, the equipment was sold for $132,700. Required: 1. Determine the annual depreciation expense for each of the estimated four years of use, the accumulated depreciation at the end of each year, and the bo 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 Year 1 $ 207,087. 2 $ $ 3 $ $ $ 4 $ $ b. Double-declining-balance method Depreciation Accumulated Depreciation, Book Value, b. Double-declining-balance method Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year Year 1 $ $ 2 $ $ 3 $ $ 4 $ $ $ 5 $ 2. Journalize the entry to record the sale, assuming double-declining-balance method is used. If an amount box does not require an entry, leave it blank. Accounting numeric field 3. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $113,900 instead of $132,700. If an amount box does not require an entry, leave it blank. Check My Work 3 more Check My Work uses remaining, Previous Next