Depreciation by two methods; sale of fixed asset PR 10-4A New lithographic equipment, acquired at a cost of $800,000 on March 1 of Year 1 (begin- ning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. OBJ. 2, 3 000 nse ral or On March 4 of Year 5, the equipment was sold for $135,000. Chapter 10 Long-Term Assets: Fixed and Intangible 531 Instructions 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 (a) the straight-line method and (b) the double-declining-balance method. The following columnar headings are suggested for each schedule: Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year Year 2. Journalize the entry to record the sale assuming that the manager chose the double- declining-balance method. 3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $88,750 instead of $135,000